Dow Jones, S&P slide for 5th day as inflation swells
Producer prices rose a record 8.3% annually in August
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U.S. stocks fell for a fifth day on Friday, closing on session lows, as producer prices posted their biggest annual increase on record.
The Dow Jones Industrial Average fell 271 points, or 0.78%, while the S&P 500 index and the Nasdaq Composite index declined 0.77% and 0.88%, respectively. Both the Dow and the S&P 500 extended their losing streaks to five days.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44860.31 | +123.74 | +0.28% |
| SP500 | S&P 500 | 6021.63 | +34.26 | +0.57% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19175.57734 | +120.74 | +0.63% |
The selling came as investors digested the producer price index report for August, which showed prices surged 8.3% annually, the most since recordkeeping began in November 2010. Prices were up 0.7% month over month.
The hotter-than-expected report caused traders to dump U.S. Treasurys, pushing the 10-year note yield up 4 basis points to 1.34%.
The selling swung the yield curve steeper, which failed to lift bank stocks. JPMorgan Chase & Co., Bank of America Corp., Wells Fargo and Citigroup shares all closed lower.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 249.91 | -0.34 | -0.14% |
| BAC | BANK OF AMERICA CORP. | 47.73 | +0.22 | +0.46% |
| C | CITIGROUP INC. | 69.74 | -0.99 | -1.40% |
| WFC | WELLS FARGO & CO. | 77.37 | +0.49 | +0.64% |
In addition, Wells Fargo & Co. agreed to pay a $250 million fine tied to its mortgage business.
Energy-related names, including Chevron Corp., ExxonMobil Corp. and Kinder Morgan Inc., were little changed as West Texas Intermediate crude oil climbed $1.58 to $69.72 a barrel. WTI crude has not closed above $70 since Aug. 3.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CVX | CHEVRON CORP. | 162.56 | +2.18 | +1.36% |
| XOM | EXXON MOBIL CORP. | 117.98 | -2.01 | -1.68% |
| KMI | KINDER MORGAN INC. | 28.09 | +0.24 | +0.88% |
Elsewhere, Moderna Inc. will over the next few weeks seek global approval to give its vaccine to children as young as 5 years old, according to a report from Der Spiegel, citing the firm’s top two executives. Separately CEO Stephane Banel said the company would pursue acquisitions of smaller, privately held companies during remarks at a Morgan Stanley investor conference.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MRNA | MODERNA INC. | 42.05 | -1.61 | -3.69% |
In earnings, Kroger Co. said it expects a smaller annual same-store sales decline than previously expected as a resurgence of COVID-19 cases has caused more customers to continue cooking at home.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KR | THE KROGER CO. | 60.57 | +0.48 | +0.80% |
| AOUT | AMERICAN OUTDOOR BRANDS INC. | 9.70 | +0.13 | +1.36% |
American Outdoors Brand Inc. reported earnings and revenue that exceeded Wall Street estimates and reaffirmed its outlook for the current fiscal year. Both earnings and revenue topped estimates.
Overseas markets were in rally mode.
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European bourses all gained with Britain’s FTSE 100 rising 0.07% while Germany’s DAX 30 and France’s CAC 40 lost 0.09% and 0.31%, respectively.
In Asia, Hong Kong’s Hang Seng index surged 1.91%, Japan’s Nikkei 225 advanced 1.25% and China’s Shanghai Composite edged up 0.27%.