US STOCKS-S&P 500 headed for record high as inflation seems temporary

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

 (For a live blog on the U.S. stock market, click  LIVE/  or
type LIVE/ in a news window.)
    * Prominent meme stocks snap rally
    * Boeing gains on possible UAL order
    * Pfizer rises on news of US govt deal
    * Industrials lag on infrastructure bill uncertainty
    * Indexes up: Dow 0.37%, S&P 0.59%, Nasdaq 0.78%

 (Updates to late afternoon; changes dateline, byline)
    By Stephen Culp
    June 10 (Reuters) - Wall Street stocks rose on Thursday,
with the S&P 500  .SPX  on course to hit an all-time closing
high, as the much-anticipated consumer price index report
signaled that the current inflation wave will be transitory.
    All three major U.S. stock indexes were higher, with
market-leading megacap stocks putting the Nasdaq  .IXIC  out
front. But economically sensitive transports  .DJT  and
smallcaps  .RUT  were in negative territory.
    The Labor Department's consumer price index (CPI) data came
in above consensus and added fodder to the debate over whether
current price spikes could morph into long-term inflation,
despite the Federal Reserve's assurances to the contrary.
 urn:newsml:reuters.com:*:nL2N2NR2Q5
    But a closer look showed that much of the price surge came
from items such as commodities and airfares, and is therefore
likely to be temporary.  urn:newsml:reuters.com:*:nW1N2NS000
    "Another upward surprise, but a key point is that quite a
lot of it is still in the transitory category so I don't think
the Fed will be particularly concerned," said Colin Asher,
senior economist at Mizuho in London. 
    "Generally, I think the Fed is getting some traction on its
message that the inflation pressures are transitory," Asher
added. "(This CPI print) must be close to being the high point."
    A U.S. House of Representatives committee passed a $547
billion infrastructure spending bill targeting surface
transportation, adopting some of President Joe Biden's proposals
as part of his broader $2.3 trillion infrastructure package.
 urn:newsml:reuters.com:*:nL2N2NS1RD
    Still, industrials  .SPLRCI  and transports, sectors that
stand to benefit from infrastructure spending, were in negative
territory.
    The Dow Jones Industrial Average  .DJI  rose 126.15 points,
or 0.37%, to 34,573.29; the S&P 500  .SPX  gained 25.09 points,
or 0.59%, at 4,244.64; and the Nasdaq Composite  .IXIC  added
108.76 points, or 0.78%, at 14,020.51.
    Among the 11 major sectors of the S&P 500, healthcare
 .SPXHC  enjoyed the largest percentage gains.
    But interest-rate sensitive financials  .SPSY  was the
biggest loser, weighed by easing U.S. Treasury yields.
    GameStop Corp  GME.N , the stock most closely associated
with the social media-driven "meme stock" phenomenon, dropped
22.0% after the videogame retailer said it may sell new shares.
 urn:newsml:reuters.com:*:nL3N2NR3UD
    Other stocks that have benefited from the retail
short-squeeze rally, including Clover Health Investments Corp
 CLOV.O , AMC Entertainment Holdings  AMC.N , Bed Bath & Beyond
Inc  BBBY.K  and GEO Group  GEO.N , also fell, between 8% and
18%.  urn:newsml:reuters.com:*:nL3N2NS237
    Boeing Co  BA.N  rose 0.9% after sources told Reuters that
United Airlines  UAL.O  was in talks to place a
multi-billion-dollar order for single-aisle jets potentially
split between Boeing and Europe's Airbus  AIR.PA .  urn:newsml:reuters.com:*:nL3N2NS208
    Pfizer Inc  PFE.N  rose 1.9% on news that the United States
would pay the drugmaker about $3.5 billion for 500 million
COVID-19 vaccine doses that it intends to donate to the 100
lowest income countries.  urn:newsml:reuters.com:*:nS8N2MQ09D
    Advancing issues outnumbered decliners on the NYSE by a
1.39-to-1 ratio; on Nasdaq, a 1.11-to-1 ratio favored advancers.
    The S&P 500 posted 57 new 52-week highs and no new lows; the
Nasdaq Composite recorded 92 new highs and 11 new lows.  

 (Reporting by Stephen Culp;
Additional reporting by Ambar Warrick and Sujata Rao; Editing by
Richard Chang)
 ((stephen.culp@thomsonreuters.com; 646-223-6076;))

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.