S&P books record as Fed's preferred inflation measure surges by most since 1992
Nike Inc. posts record quarterly revenue
Stifel Financial Chairman and CEO Ron Kruszewski on the markets and unemployment.
The S&P 500 rallied to a record high Friday as investors grappled with the hottest annual reading of the Federal Reserve's preferred inflation measure in nearly 30 years.
The benchmark S&P gained 0.34%, finishing more than 15 points above its previous all-time peak, while the Dow Jones Industrial Average advanced 0.7% and the Nasdaq Composite slipped 0.06%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44296.51 | +426.16 | +0.97% |
| SP500 | S&P 500 | 5969.34 | +20.63 | +0.35% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19003.651134 | +31.23 | +0.16% |
Core personal consumption expenditures, the Federal Reserve's preferred inflation measure, rose 3.4% annually in May, making for the biggest increase since 1992. Prices were up 0.5% on a monthly basis. Additionally, personal income declined 2% as the impact from stimulus checks continued to subside while consumption was unchanged.
In stocks, all 23 banks passed the Federal Reserve’s annual stress tests, paving the way for the financial institutions to hike their dividends and announce stock buyback plans starting in July.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 248.53 | +3.59 | +1.47% |
| C | CITIGROUP INC. | 69.84 | +0.89 | +1.29% |
| BAC | BANK OF AMERICA CORP. | 46.99 | +0.55 | +1.17% |
Elsewhere, Nike Inc. reported record quarterly sales, benefitting from consumers seeking out relaxed options like sneakers and sweatpants. Revenue guidance for the current fiscal year topped analyst expectations.
FedEx Corp. swung to a profit as the surge in online shopping during the pandemic boosted the need for package delivery services. Adjusted earnings fell short of expectations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NKE | NIKE INC. | 77.39 | +2.29 | +3.06% |
| FDX | FEDEX CORP. | 299.97 | +4.81 | +1.63% |
| KMX | CARMAX INC. | 81.60 | +0.97 | +1.20% |
CarMax Inc. announced record quarterly earnings and revenue as strong demand for used cars boosted sales by 138% year over year.
Meanwhile, Panasonic Corp. sold its stake in Tesla Inc. for $3.6 billion in the year ended March, a company spokesperson said. The Tokyo-based electronics maker in 2010 purchased 1.4 million shares at $21.15 apiece.
Virgin Galactic Holdings Inc. received Federal Aviation Administration approval to fly customers into space. A test flight is expected later this year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PCRFY | NO DATA AVAILABLE | - | - | - |
| TSLA | TESLA INC. | 352.56 | +12.92 | +3.80% |
| SPCE | VIRGIN GALACTIC HOLDINGS INC. | 7.15 | +0.43 | +6.40% |
In commodities, West Texas Intermediate crude oil rose 75 cents to $74.05 a barrel and gold climbed $1 to $1,776.60 an ounce.
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Overseas markets were mostly higher.
In Europe, Britain’s FTSE 100 rose 0.37% while Germany’s DAX ticked up 0.12% and France's CAC 40 slipped 0.12%.
Asian markets were higher across the board with Japan's Nikkei 225 edging up 0.66%, China's Shanghai Composite advancing 1.15% and Hong Kong's Hang Seng index surging 1.4%.