Market Reacts to CPI Report: Key ETF Movements and Corporate Earnings Insights
1 year ago

In Thursday's premarket trading, the broader market exchange-traded fund, SPDR S&P 500 ETF Trust (SPY), experienced a modest increase of 0.3%, while the actively traded Invesco QQQ Trust (QQQ) saw a rise of 0.4%. This uptick is largely fueled by growing optimism surrounding a potential interest rate cut following the recent Consumer Price Index (CPI) report released on Wednesday.

Broader stock market futures also showed positive signs, with S&P 500 Index futures up 0.2%, Dow Jones Industrial Average futures climbing 0.3%, and Nasdaq futures gaining 0.2% ahead of regular trading hours. The national retail sales report will be published at 8:30 AM ET, alongside several other significant data points, including the weekly jobless claims bulletin, Philadelphia Fed Manufacturing Index for August, Empire State Manufacturing Index, and the import/export prices report for July.

Additionally, the July industrial production bulletin is set to post at 9:15 AM ET, with business inventories and the housing market index reports scheduled for 10 AM ET considerations. At 10:30 AM ET, the weekly EIA natural gas report will also be available for market scrutiny. Speeches from notable Federal Reserve officials will shape the day's outlook as well; Federal Reserve St.

Louis President Alberto Musalem is set to speak at 9:10 AM ET, and Philadelphia Fed President Patrick Harker will address the market at 1:10 PM ET. In the realm of cryptocurrency, Bitcoin saw a 0.3% increase, while the ProShares Bitcoin Strategy ETF (BITO) was also up 0.2% as investors remained enthusiastic about digital assets. **Sector Insights: Consumer** A closer look at the consumer sector reveals that the Consumer Staples Select Sector SPDR Fund (XLP) improved by 0.9%, and the Vanguard Consumer Staples Fund (VDC) advanced by 0.4%.

However, the iShares US Consumer Staples ETF (IYK) remained inactive. Contrastingly, the Consumer Discretionary Select Sector SPDR Fund (XLY) recorded a gain of 0.3%, while the VanEck Retail ETF (RTH) showed a similar 0.3% uptick. The SPDR S&P Retail ETF (XRT) surged to a notable 1.2% increase. Walmart (WMT) notably climbed over 6% in pre-bell trading after the company reported an impressive fiscal Q2 revenue boost and subsequently raised its guidance for fiscal 2025, indicating a positive outlook for the retail giant. **Winners and Losers in the Industrial Sector:** Within the industrial sector, the Industrial Select Sector SPDR Fund (XLI) gained 0.1%, while both Vanguard Industrials Index Fund (VIS) and iShares US Industrials ETF (IYJ) were inactive.

Notably, Heico Corporation (HEI) shares surged nearly 6% in pre-market trading following a Wednesday filing that revealed Berkshire Hathaway (BRK.A, BRK.B) acquiring a substantial $185.4 million worth of Heico shares in the second quarter. **Technology Developments:** The technology sector saw the Technology Select Sector SPDR Fund (XLK) gain 0.3%, while the iShares US Technology ETF (IYW) remained flat.

The iShares Expanded Tech Sector ETF (IGM.US) fell by 1.7%. Among semiconductor ETFs, the SPDR S&P Semiconductor ETF (XSD) remained inactive, whereas the iShares Semiconductor ETF (SOXX) saw a slight rise of 0.4%. Shares in NICE (NICE) rose nearly 6% in premarket trading due to a strong Q2 financial performance and the announcement of Scott Russell as the new CEO starting January 1, 2025. **Financial Sector Movements:** Within the financial sector, the Financial Select Sector SPDR Fund (XLF) saw an increase of 0.1%.

The Direxion Daily Financial Bull 3X Shares (FAS.US) remained flat, while its bearish counterpart, the Direxion Daily Financial Bear 3X Shares (FAZ), fell by 0.1%. Shares of UBS (UBS) fell 3% in pre-bell trading after reports surfaced indicating the company plans to liquidate the Credit Suisse Real Estate Fund International due to declining liquidity in real estate markets. **Health Care Sector Trends:** In the health care sector, the Health Care Select Sector SPDR Fund (XLV) increased by 0.2%.

The Vanguard Health Care Index Fund (VHT) and the iShares US Healthcare ETF (IYH) were inactive, while the iShares Biotechnology ETF (IBB) saw a minimal rise of 0.04%. Anew Medical (WENA) faced a 2% decline after announcing it secured a US patent for an RNA splice variant of the human Klotho gene intended for treating cognitive and neurodegenerative diseases. **Energy Sector Overview:** The iShares US Energy ETF (IYE) remained inactive, whereas the Energy Select Sector SPDR Fund (XLE) increased by 0.4%.

Golar LNG (GLNG) shares were up 1.3% in pre-market trading following the company reporting a swing to Q2 net income. **Commodity Market Review:** Turning to commodities, the front-month US West Texas Intermediate crude oil advanced by 1% to reach $77.75 per barrel on the New York Mercantile Exchange.

Natural gas prices rose by 1.4% to $2.25 per 1 million British thermal units. The United States Oil Fund (USO) gained 0.8%, while the United States Natural Gas Fund (UNG) increased by 0.1%. Gold futures for December rose 0.7% to $2,498 an ounce on the Comex, with silver futures also gaining 3.3% to hit $28.24 per ounce.

The SPDR Gold Shares (GLD) increased by 0.5%, while iShares Silver Trust (SLV) climbed by 2.5%..

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