U.S. equities are modestly higher in afternoon action on the heels of yesterday's sharp drop that came as consumer price inflation surprisingly came in hot. However, the markets remain jittery as August inflation data continues to pour in, with producer price inflation dipping but core wholesale prices coming in hotter than expected. The inflation data appears to have solidified expectations that the Fed will remain aggressive with next week's monetary policy decision looming. Treasury yields are mixed, and the U.S. dollar is dipping after Tuesday's jump. Crude oil prices are rising, and gold is lower. In other economic news, mortgage applications fell for a fifth-straight week. In equity news, Starbucks is higher after issuing an upbeat forecast, and Dow component Johnson & Johnson is rising after announcing a $5 billion share repurchase program, but Nucor Corporation is falling after delivering a softer-than-expected outlook. Europe was mostly lower, adding to Tuesday's decline, while markets in Asia fell broadly on the heels of yesterday's drop in the U.S. and the inflation data.
At 12:50 p.m. ET, the Dow Jones Industrial Average is up 0.3%, the S&P 500 Index is rising 0.5%, and the Nasdaq Composite is increasing 0.8%. WTI crude oil is gaining $2.56 to $89.87 per barrel, and Brent crude oil is advancing $2.48 at $95.65 per barrel. The gold spot price is trading $5.20 lower to $1,712.30 per ounce, and the Dollar Index is dipping 0.3% to 109.45.
Starbucks Corporation (SBUX $93) raised its 2023 revenue growth outlook and increased its three-year revenue and earnings-per-share (EPS) guidance. SBUX also said it plans to resume its share buyback program. The company cited its decisive actions and targeted investments in partners, customers, and stores that are expected to accelerate its long-term growth. Shares are trading solidly higher.
Dow member Johnson & Johnson (JNJ $165) announced a $5.0 billion share repurchase program, citing continued confidence in its business and pipeline. JNJ also reaffirmed its full-year EPS and operational sales guidance. JNJ is moving to the upside.