The stock market remained in the green in afternoon trading on Wednesday, improving in the past hour, with the major indexes near the highs of the day. Investors had the August key inflation data on their minds but didn't appear too rattled by the numbers.
The Labor Department's consumer price index rose 0.6% as expected in August and was higher than July's 0.2% increase. The 3.7% year-over-year rise was slightly higher than the 3.6% expected, and above July's 3.2%. Steeper gasoline prices helped lift the numbers.
August core CPI, which excludes food and energy, rose 0.3% vs. 0.2%, which was both the forecast and July's number. The year-over-year core inflation rate came in at 4.3% as projected, and lower than July's 4.7%.
Investors will be looking for the August producer price index and U.S. retail sales on Thursday.
The benchmark 10-year Treasury yield shed 2 basis points to 4.25%.
The Nasdaq was up 0.6% in afternoon stock market action.
The Dow Jones Industrial Average inched up 0.1%, while the S&P 500 added 0.3%. The S&P and Nasdaq remain below their 50-day moving averages. The small-cap Russell 2000 underperformed the major indexes and pulled back 0.4% and tested its 200-day moving average.
Volume fell on the NYSE but rose on the Nasdaq vs. the same time on Tuesday.
The Nasdaq 100-tracking Invesco QQQ Trust ETF advanced 0.7%. But the Innovator IBD 50 ETF fared worse than the major indexes and edged lower 0.4%.
Stock Market Movers: Transport Stock Rallies
J.B. Hunt Transport Services trimmed early gains and is now up 3.5% in heavy volume. The transportation and logistics company is presenting at the Morgan Stanley Laguna Conference today.
J.B. Hunt President Shelley Simpson said that customers are cautiously optimistic about the rest of the year, according to Dow Jones Newswires.
JBHT stock bumped up against its 50-day line to find resistance before retreating and finding support at its 200-day line. Shares pulled back after breaking out of a saucer base and hitting a 52-week high on Aug. 4. The stock has given back all gains and triggered a round-trip sell signal from the 200.64 buy point.
Moderna jumped 3.2% in heavy volume following news of the company's positive results from a Phase 3 trial of its flu vaccine. The company also gave insight on its plans for vaccines for cancer and other diseases.
American Airlines gapped down over 5% after the carrier significantly lowered profit guidance for the current quarter. The airline cited higher pilot labor and fuel costs for the decline.
Meanwhile, Spirit Airlines descended 2.6% in heavy trading after the low-fare airline lowered its third-quarter revenue forecast due to discounted airfares.
United Airlines shed 2.8% and Southwest Airlines fell 2.3% in sympathy with the news.
Shares of diabetes products and health care company Novo Nordisk sank 1.9% in heavy volume on news that the stock will have a 2-for-1 stock split on Sept. 20.
Rocket Pharmaceuticals gapped up over 36% in huge volume on news that the biotech company reached an agreement with the FDA to support the Phase 2 trial of a treatment for a rare genetic disorder called Danon disease. The stock reclaimed its 50-day line on the move.
Other Movers
IBD 50 stock Freshworks sold off 3% on top of yesterday's 2.5% decline, and is now below its 21-day exponential moving average. Shares pulled back from a 52-week high hit on Sept. 8.
Shares gapped up after the customer service and management platform company reported a Q2 profit and sales beat on Aug. 1. FRSH stock topped a profit zone before retreating.
IBD 50 stock Carpenter Technology jumped 6.2% after Benchmark raised its price target to 100 from 65 and maintained its buy rating on the specialty metals maker. Shares are extended from a cup-with-handle base with a 53.60 buy point. The stock hit a 52-week high on Wednesday and has gained 87% this year.
Carpenter reported profits for three straight quarters after multiple losing quarters. Sales growth has ranged from 34%-46% in the last six quarters. Analysts project 219% full-year fiscal 2024 EPS growth and 29% in 2025.
Amazon stock climbed 2.2% and hit the 143.63 buy point of a flat base. Shares are in the 5% buy zone reaching to 150.81. AMZN stock hit a 52-week high on Wednesday.
The e-commerce stock is a holding in the IBD Swing Trader model portfolio.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
