Stocks close higher, Nasdaq clinches fifth day of gains after CPI report suggests cooling inflation; European stocks close at highest level since April 2022 after U.S. inflation print
Stocks closed higher Thursday after December’s consumer price report showed inflation cooled for the month, raising hopes the Federal Reserve can once again slow interest rate hikes.
The Dow Jones Industrial Average gained 216 points, or 0.6%. The S&P 500 added 0.3%. The Nasdaq Composite is up 0.6% as it attempts to post a five-day winning streak, which would be a first for the technology-heavy index since July.
The Nasdaq is on pace for the biggest weekly increase of the three indexes, gaining 3.8% so far as investors picked up beaten-down growth stocks ahead of the CPI report. The S&P 500 and Dow are also poised for weekly advances of 2.1% and 1.5%, respectively.
The December report showed a 0.1% dip in prices from November, but prices were still 6.5% higher than the prior year. That’s in line with what economists polled by Dow Jones expected. In November, the report showed a 0.1% monthly gain and an annual pace of 7.1%.
The pan-European Stoxx 600 index provisionally closed 0.7% higher, with most sectors and major bourses in positive territory. Retail stocks led the gains, up nearly 2%, while chemicals and healthcare stocks were both down around 0.1%.
The Volkswagen Group reported its lowest sales in more than a decade in 2022, according to Reuters, after the company contended with Covid-19 lockdowns in China and with supply chain challenges caused by the war in Ukraine.
The German group said Thursday it delivered 8.3 million vehicles to customers last year, down by 7% compared to 2021.
Weakening global economies and supply chain shortages will continue to cloud the outlook for 2023, according to extended executive sales committee member Hildegard Wortmann.
Shares of French video game publisher Ubisoft plunged more than 21% in early trade after the company cut its revenue guidance, postponed the release of its new game “Skull & Bones” and cancelled three unannounced games.
Swiss computer peripherals company Logitech sank more than 14% after missing quarterly earnings expectations and cutting its sales outlook.
Source: CNBC, Investing.com