In the latest trading session, US equity indexes exhibited a mixed performance as traders digested inflation data pertinent to July. The Nasdaq Composite experienced a decline of 0.3%, finishing at 17,140.7 points. Conversely, the S&P 500 saw a modest increase, rising 0.1% to reach 5,440.7, while the Dow Jones Industrial Average gained 0.5%, closing at 39,976.9.
Notably, sectors such as financials and real estate emerged as significant gainers, whereas communication services led the decliners during intraday trading. The Bureau of Labor Statistics released its latest data indicating that the seasonally adjusted consumer price index (CPI) rose by 0.2% in July, aligning with the expectations forecasted in a Bloomberg survey.
This follows a slight decrease of 0.1% in the previous month, June. Moreover, core CPI, which excludes volatile food and energy prices, also increased by 0.2%, consistent with predictions and demonstrating a comparison of a mere 0.1% gain in June. The overall year-over-year increase in both overall and core CPI moderated to 2.9% and 3.2%, respectively, down from 3% and 3.3% in the preceding month.
This cooling inflation signal may influence future monetary policy considerations among market participants. In a noteworthy development regarding Treasury yields, most saw a decrease, with the yield on 10-year Treasuries declining by 3.4 basis points, now sitting at 3.82%. This movement reflects changing investor sentiment responsive to the inflation data and broader market environment. Additionally, the price for West Texas Intermediate crude oil saw a reduction of 0.9%, landing at $77.66 per barrel, reflective of ongoing market adjustments in energy resources. In corporate news, Kellanova Inc.
($K) has announced its agreement to be acquired by Mars in a substantial all-cash deal valued at $35.9 billion, which includes assumptions of net leverage. Mars, a leading company in the confectionery sector known for its popular brands such as M&Ms and Skittles, intends to pay $83.50 per share for Kellanova, which is famous for its snacks including Pringles and Cheez-It varieties.
This strategic acquisition has clearly resonated well in the markets, evident by Kellanova’s shares surging by 7.7% intraday, marking it as the top performer on the S&P 500 for the day..