Magnificent News: Stocks rise for a fourth day | August inflation expectations | A subprime problem for Goldman’s Apple Card business

Monday, September 12, 2022

Stocks rise for a fourth day | August inflation expectations | A subprime problem for Goldman’s Apple Card business

MON, SEP 12, 2022

EVENING BRIEF

AS OF MON, SEP 12, 2022 • 04:51 ET

DJIA		32381.34
		+0.71%	+229.63

S&P 500		4110.41
		+1.06%	+43.05

NASDAQ		12266.41
		+1.27%	+154.10

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	163.43	+6.06	+3.85%
INTC	31.56	+0.10	+0.32%
MMM	124.25	+1.15	+0.93%

S&P 500
NAME	LAST	CHG	%CHG
AAPL	163.43	+6.06	+3.85%
AMD	84.64	-0.81	-0.95%
AMZN	136.45	+3.18	+2.39%

NASDAQ
NAME	LAST	CHG	%CHG
AAPL	163.43	+6.06	+3.85%
AMD	84.64	-0.81	-0.95%
AMZN	136.45	+3.18	+2.39%

EDITOR'S NOTE

Stocks rose for a fourth consecutive session on Monday as the market appears to have stabilized a bit after a late-August swoon.

However, while there are pieces of positive news helping to buoy stocks, the market as a whole still looks cautious. Defensive stocks like utilities are outperforming, while Treasury yields remain near their highs of the year. Even though a report on Monday showed consumer expectations for inflation falling, long-term Treasury yields rose and the 2-year Treasury yield held above 3.5%.

"As long as short-term interest rates continue to push higher, the downtrend that still exists in the equity market is probably going to remain intact, in my opinion," said Jeff Mills of Bryn Mawr Trust.

If any event this week can get the stock and bond markets on the same page, it will likely be Tuesday morning's consumer price index report. The reading may show a month-over-month decline in headline inflation.

"With consumer prices growing at a slower pace in July, there are some encouraging signs that some relief may be in the pipeline. For example, annual changes in CPI are highly correlated with commodity prices, which have recently turned lower via the Bloomberg Commodity Index," Glenmede's private wealth CIO Jason Pride wrote in a note to clients.

"Meanwhile, the sustained decline in gas prices has helped offset some cost pressures and is likely to reflect in headline consumer price inflation for August as well," he added. "However, there remains much uncertainty over the inflation outlook due to Russia's war in Ukraine and the associated risk with energy supplies."