Stocks open higher
All three major indexes rose on Friday as traders braced for comments from Federal Reserve Chairman Jerome Powell in Jackson Hole.
The Dow It was up more than 170 points, or 0.4%, after 9:30 a.m. ET. The S&P 500 And Nasdaq Composite rose 0.5% and 0.8% respectively.
– Alex Haring
Fed's Bostick stops short of endorsing September rate cut
Speaking in Jackson Hole on August 23, 2024.
David A. Grogan | CNBC
Atlanta Federal Reserve President Raphael Bostic said Friday that an interest rate cut is « in play » in September but did not make a firm commitment.
Inflation is improving, but still « not particularly close to our target, » Bostick told CNBC's Steve Leisman, awaiting further confirmation from data that it is time for the Fed to ease monetary policy.
« We still have a ways to go and I don't think it's in our interest or anybody's interest to assume we're done, so we don't have to worry about that, » he said. « Squawk Box » interview.
Bostic had previously said he did not expect the Fed to cut until the fourth quarter and only once this year, contrary to market expectations.
– Jeff Cox
Stocks that make the biggest moves in the premarket
A cat sits next to a Chevy shipping box outside a home in Germantown, New York on February 19, 2024.
Angus Mordant | Bloomberg | Good pictures
Check out the companies making headlines ahead of time:
Chevy — The pet retailer's stock advanced more than 2% to outperform neutral on an upgrade from Piper Chandler. Piper Chandler believes gross margin expansion and efficiency gains are the catalysts for the stock's upside.
Peloton — Shares of the connected fitness company fell about 2.4%, a day after Peloton jumped roughly 35% on strong quarterly results that returned to sales growth for the first time in nine quarters as it cut costs. The peloton gave a mixed outlook for the year ahead. JPMorgan cut shares after Thursday's rally.
The glass retailer rose 6% after Warby Parker – JMB Securities upgraded shares. The company anticipates more constructive commentary from Warby Parker's management in the coming quarters.
The full list can be found here.
– Hakyung Kim
How stocks are performing this week
Friday is all that's left of what's shaping up to be a chaotic week. Here's where the three indexes are from the week to date:
– Alex Haring
Market recovery drivers are still in place, Vital Knowledge says
Despite Thursday's seesaw market action, Adam Crisafulli reiterated that the « big 3 » drivers of the August snapback remain in place. These are:
- « Ensure Growth »
- Fixed income
- Expectations of the Federal Reserve easing monetary policy
« Though immediate bulls will have to contend with: 1) expectations (with much of the July-end earnings season still to go, it's possible that Powell is confident in the pace and magnitude of the impending easing cycle. Two of the most important companies: Nvidia and Broadcom) and 2 ) valuations (SPX's PE is too high, leaving little room to absorb macro setbacks). »
– Fred Imbert
European markets open higher
European shares opened higher on Friday as investors looked ahead to US Federal Reserve Chairman Jerome Powell's speech after the session from Jackson Hole, Wyoming.
The Stoxx 600 index rose 0.11% in early deals, with all major bourses and most sectors trading in the green. Oil and gas stocks rose 0.57%, while food and beverage stocks fell 0.87%.
England's FTSE index rose 0.29% to 8,312, Germany's DAX rose 0.25% to 18,538, France's CAC 40 rose 0.28% to 7,545 and Italy's FTSE MIB rose 0.44% to 52.
Stoxx 600.
Stocks that make the biggest moves after hours
