Stocks Increasing Following Additional Release of Inflation Data

U.S. stocks are moving upward, continuing yesterday's rally, as the markets digest the release of the Producer Price Index. Like yesterday’s Consumer Price Index, this inflation report came in lower than expected. The data seems to be dampening expectations that the Fed will have to remain severely aggressive with tightening monetary policy. Treasuries have turned mixed with yields rising on the mid-to-long end of the curve to extend the recent steepening of the yield curve. The U.S. dollar continues to decline following the inflation data, crude oil is trading higher, and gold is losing some ground. In equity news, Dow member Walt Disney Company topped earnings estimates and posted stronger-than-expected subscriber figures, while GSK, Sanofi, and Haleon are extending drops on litigation concerns regarding Zantac. In other economic news, jobless claims continued to climb but by a smaller amount than expected. Asia finished higher and Europe closed mixed, with the global markets digesting the U.S. inflation data.

At 12:53 p.m. ET, the Dow Jones Industrial Average is up 0.6%, the S&P 500 Index is rising 0.5%, and the Nasdaq Composite is gaining 0.2%. WTI crude oil is increasing $2.49 to $94.43 per barrel, and Brent crude oil is advancing $2.36 at $99.76 per barrel. The gold spot price is trading $8.80 lower to $1,804.90 per ounce, and the Dollar Index is dropping 0.2% to 105.00.

Dow member Walt Disney Company (DIS $119) reported adjusted fiscal Q3 earnings-per-share (EPS) of $1.09, above the $0.97 FactSet estimate, as revenues rose 26.0% year-over-year (y/y) to $21.5 billion, north of the Street's forecast of $21.0 billion. DIS added 14.4 million Disney+ subscribers, bringing its total subscriber figure—including ESPN+ and Hulu—to 221 million, which was above analysts' estimates. The company's revenue out of its theme park segment also came in above expectations. DIS also announced a new ad-supported subscription tier for its Disney+ streaming service and said it will raise the price of its direct-to-consumer streaming offers. Shares are trading solidly higher.

Q2 earnings season is heading down the home stretch, and of the 452 S&P 500 companies that have reported thus far, roughly 64% have topped revenue forecasts and approximately 75% have bested profit projections, per data compiled by Bloomberg. Compared to last year, revenue growth is tracking to be up 14.9% and earnings are 8.8% higher.