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Real-time Estimate Cboe BZX  -  02:13 2022-10-03 pm EDT
31.79 USD   -3.40%
12:37pS&P 500, Dow jump over 2% to kick-start fourth quarter
10:29aWall Street jumps over 1% to start fourth quarter
09/30Georgia judge nixes tax break for electric truck firm Rivian
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Wall St eyes weekly gains as slowing inflation raises hopes

08/12/2022 | 02:53pm EDT

* Rivian gains as higher deliveries drive Q2 revenue beat

* Nasdaq, S&P 500 set for fourth weekly gain

* S&P 500 set to recover 50% of bear market losses

* Indexes up: Dow 0.88%, S&P 1.28%, Nasdaq 1.62%

NEW YORK, Aug 12 (Reuters) - Wall Street rallied on Friday, setting the S&P 500 and the Nasdaq up for a fourth straight week of gains, as signs that inflation may have peaked in July increased investor confidence that a bull market is under way.

The S&P 500 is up 16.8% from a mid-June low, with the latest boost coming from data this week showing a slower-than-expected rise in the consumer price index and a surprise drop in producer prices last month.

The S&P 500 crossed a closely watched technical level of 4,231 points, indicating the benchmark index has recouped half its losses since tumbling from its all-time peak in January. A 50% retracement for some signals a bull market.

As the S&P 500 and Nasdaq headed for a fourth straight week of gains, analysts noted the Federal Reserve still had its work cut out to tame inflation by raising interest rates without prompting a recession.

"Markets certainly got great news this week on inflation," said Dec Mullarkey, managing director of investment strategy and asset allocation at SLC Management in Boston.

"A victory lap in some respects was in order, but it's not 'mission accomplished' by any means. It's still a very slow grind ahead."

The Dow Jones Industrial Average rose 300.32 points, or 0.9%, to 33,636.99, the S&P 500 gained 53.72 points, or 1.28%, to 4,260.99 and the Nasdaq Composite added 206.79 points, or 1.62%, to 12,986.70.

While the Fed is prepared to further tighten monetary policy until inflation has fully abated, traders see just a 55.5% chance of policymakers raising rates by 50 basis points when they meet in September, instead of 75 basis points.

The Fed has raised its policy rate by 225 basis points since March as it battles to cool demand without sparking a sharp rise in layoffs.

All 11 of the major S&P 500 sectors advanced, with information technology stocks leading the gains.

Technology stocks such as Apple Inc and Alphabet Inc rose more than 1% each as investors snapped up growth shares and Treasury yields dipped after a volatile week.

Growth stocks have underpeformed theunderperformedterparts so far this year on worries that rising Treasury yields due to aggressive rate hikes will pressure their valuation. But growth outperformed value on Friday.

Investors bought $7.1 billion in equities in the week to Wednesday, according to a Bank of America note, with U.S. growth stocks recording their largest weekly inflow since December last year.

"The major indices are trading near highs going back to May and June and those highs are now serving as near-term resistance," said Adam Sarhan, chief executive of 50 Park Investments.

Meanwhile, banks rose 0.8% and were on track to extend their rally for a sixth straight week. JPMorgan Chase and Morgan Stanley rose about 1.0% each.

Data showed U.S. consumer sentiment ticked further up in August from a record low this summer and American households' near-term outlook for inflation eased again on easing gasoline prices.

After a rough start to the year, better-than-expected second-quarter earnings from corporate America have supported the upbeat sentiment for U.S. equities.

Of the 456 S&P 500 companies that have reported earnings so far, 77.6% have topped profit expectations, as per Refinitiv data.

Rivian Automotive Inc rose 0.3% as the electric-vehicle maker reported better-than-expected second-quarter revenue.

GlobalFoundries Inc jumped 11.9% on being added to BofA Global Research's "U.S. 1 list."

Advancing issues outnumbered declining ones on the NYSE by a 3.51-to-1 ratio; on Nasdaq, a 2.56-to-1 ratio favored advancers.

The S&P 500 posted five new 52-week highs and 29 new lows; the Nasdaq Composite recorded 64 new highs and 37 new lows.

(Reporting by Herbert Lash in New York Additional reporting by Bansari Mayur Kamdar and Aniruddha Ghosh in Bengaluru; Editing by Arun Koyyur and Matthew Lewis)

© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
ALPHABET INC. 3.04% 98.5801 Delayed Quote.-33.97%
APPLE INC. 2.81% 142.0701 Delayed Quote.-22.17%
GLOBALFOUNDRIES INC. 1.60% 49.135 Delayed Quote.-25.58%
RIVIAN AUTOMOTIVE, INC. -3.52% 31.765 Delayed Quote.-68.26%
12:37pS&P 500, Dow jump over 2% to kick-start fourth quarter
10:29aWall Street jumps over 1% to start fourth quarter
09/30Georgia judge nixes tax break for electric truck firm Rivian
09/29Rivian Automotive Shares Fall Even After Truist Securities Begins Coverage at Buy
09/29Truist Securities Starts Rivian Automotive at Buy With $65 Price Target
09/28RBC Cuts Price Target on Rivian Automotive to $62 From $75 Amid 'Changeover Factors,' M..
09/21Sterling Infrastructure Unit Gets $45 Million Contract for Rivian's New EV Facility in ..
09/20Ford shares fall 10% on warning of higher inflation-related supply costs
09/19MarketScreener's World Press Review : September 13, ..
09/14Needham Initiates Rivian Automotive With Hold Rating
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Analyst Recommendations on RIVIAN AUTOMOTIVE, INC.
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Financials (USD)
Sales 2022 1 822 M - -
Net income 2022 -6 676 M - -
Net cash 2022 9 841 M - -
P/E ratio 2022 -4,42x
Yield 2022 -
Capitalization 30 152 M 30 152 M -
EV / Sales 2022 11,1x
EV / Sales 2023 4,14x
Nbr of Employees 10 422
Free-Float 86,9%
Duration : Period :
Rivian Automotive, Inc. Technical Analysis Chart | MarketScreener
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Technical analysis trends RIVIAN AUTOMOTIVE, INC.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 19
Last Close Price 32,91 $
Average target price 52,65 $
Spread / Average Target 60,0%
EPS Revisions
Managers and Directors
Robert Joseph Scaringe Chairman & Chief Executive Officer
Claire McDonough Chief Financial Officer
Nick Kalayjian EVP-Engineering, Product Development & Programs
Frank Klein Chief Operations Officer
Karen Boone Lead Independent Director
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