New Consumer Price Index (CPI) results for July are out this morning, depicting a predictably moderating scenario from what we saw the previous month: +0.5% in in-line with analyst estimates, down from the unrevised +0.9% reported for June, which was the highest read in 13 years. Year over year, CPI has reached a new 30-year high at +5.4%.
The “core CPI” read — subtracting volatile food and energy costs — came in at +0.3%, slightly below expectations. This also followed June’s +0.9%, which was the highest core print on CPI in 40 years. Year over year, we see +4.3% on core. This is slightly moderated down from expectations, but also shows strength in consumer pricing overall.
Over the past few months, we’ve seen notably large advances in the price of certain goods. One which has drawn much focus has been Used Cars, which, as supply constraints for computer chips in new cars kept availability low, grew at monthly rates not seen in a very long time: +10%, +7.3% and +10.5% CPI growth in used cars in the previous three months. For July, this figure is -0.2%. A good example of how prices are moderating.
Zacks Rank #2 (Buy) company Wendy’s (WEN - Free Report) posted a 50% positive earnings surprise this morning in its Q2 report: 27 cents per share topped the 18 cents in the Zacks consensus and 12 cents per share in the year-ago quarter. This makes three times in the last four quarters the quick-service restaurant has outperformed expectations. Revenues of $493.34 million topped expectations by 7.2%. Shares had been flat year to date, but are up more than 4% this morning. For more on WEN’s earnings, click here.
Zacks Rank #5 (Strong Sell) outerwear firm Canada Goos (GOOS - Free Report) reported a deeper-than-expected miss on the bottom line: -42 cents per share, versus -30 cents expected by Zacks analysts. This marks only the second miss on the company’s bottom line since its IPO in 2017. Revenues in the quarter more than doubled year over year to $45.8 million. The stock had risen 49% year to date, but has dropped 6.6% on this morning’s fiscal Q1 report.
Pre-market futures were almost flat ahead of today’s CPI report, and all three major indexes raced ahead after its release. A half hour ahead of the opening bell, the Dow is +70 points, the Nasdaq is +50 and the S&P 500 +8 points. The Dow and S&P look to open today’s regular trading session at fresh all-time highs, with the Nasdaq only 100 points or so below its August 5th all-time high.
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New Consumer Price Index (CPI) results for July are out this morning, depicting a predictably moderating scenario from what we saw the previous month: +0.5% in in-line with analyst estimates, down from the unrevised +0.9% reported for June, which was the highest read in 13 years. Year over year, CPI has reached a new 30-year high at +5.4%.
The “core CPI” read — subtracting volatile food and energy costs — came in at +0.3%, slightly below expectations. This also followed June’s +0.9%, which was the highest core print on CPI in 40 years. Year over year, we see +4.3% on core. This is slightly moderated down from expectations, but also shows strength in consumer pricing overall.
Over the past few months, we’ve seen notably large advances in the price of certain goods. One which has drawn much focus has been Used Cars, which, as supply constraints for computer chips in new cars kept availability low, grew at monthly rates not seen in a very long time: +10%, +7.3% and +10.5% CPI growth in used cars in the previous three months. For July, this figure is -0.2%. A good example of how prices are moderating.
Zacks Rank #2 (Buy) company Wendy’s (WEN - Free Report) posted a 50% positive earnings surprise this morning in its Q2 report: 27 cents per share topped the 18 cents in the Zacks consensus and 12 cents per share in the year-ago quarter. This makes three times in the last four quarters the quick-service restaurant has outperformed expectations. Revenues of $493.34 million topped expectations by 7.2%. Shares had been flat year to date, but are up more than 4% this morning. For more on WEN’s earnings, click here.
Zacks Rank #5 (Strong Sell) outerwear firm Canada Goos (GOOS - Free Report) reported a deeper-than-expected miss on the bottom line: -42 cents per share, versus -30 cents expected by Zacks analysts. This marks only the second miss on the company’s bottom line since its IPO in 2017. Revenues in the quarter more than doubled year over year to $45.8 million. The stock had risen 49% year to date, but has dropped 6.6% on this morning’s fiscal Q1 report.
Pre-market futures were almost flat ahead of today’s CPI report, and all three major indexes raced ahead after its release. A half hour ahead of the opening bell, the Dow is +70 points, the Nasdaq is +50 and the S&P 500 +8 points. The Dow and S&P look to open today’s regular trading session at fresh all-time highs, with the Nasdaq only 100 points or so below its August 5th all-time high.
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Biden or Trump? Zacks is releasing a FREE Special Report, Profit from the 2024 Presidential Election (no matter who wins).
Since 1950, presidential election years have been strong for the market. This report names 5 timely stocks to ride the wave of electoral excitement.
They include a medical manufacturer that gained +11,000% in the last 15 years… a rental company absolutely crushing its sector… an energy powerhouse planning to grow its already large dividend by 25%... an aerospace and defense standout that just landed a potentially $80 billion contract… and a giant chipmaker building huge plants in the U.S.
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