Dow Jones, S&P rally to records after inflation data

Consumer prices rose 5.4% year over year, matching fastest increase since August 2008

U.S. stock indexes hit record highs Wednesday as investors digested the latest consumer price index report. 

The Dow Jones Industrial Average rose 220 points, or 0.62%, while the S&P 500 index ticked up 0.25% and the Nasdaq Composite slipped 0.16%. Both the Dow and the S&P closed at all-time highs for a second straight day. The Nasdaq finished less than 1% below its own record peak. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 35677.02 +73.94 +0.21%
SP500 S&P 500 4544.9 -4.88 -0.11%
I:COMP NASDAQ COMPOSITE INDEX 15090.200353 -125.50 -0.82%

The July consumer price index showed prices jumped 5.4% annually, matching June's reading for the fastest increase since August 2008. Prices were up 0.5% month over month, slowing from the 0.9% gain in June. 

CONSUMER PRICES RISE 5.4% ANNUALLY IN JULY

In stocks, cyclicals that would benefit from infrastructure spending, including Caterpillar Inc. and Nucor Corp., continued to outperform. 

Ticker Security Last Change Change %
CAT CATERPILLAR, INC. 200.65 -0.38 -0.19%
NUE NUCOR CORP. 102.33 +0.26 +0.25%

Boeing Co. completed a test flight in China for its 737 Max jet, which has been grounded in the country for two and a half years. It is unknown when the aircraft will be allowed to return to service. 

Ticker Security Last Change Change %
BA THE BOEING CO. 212.97 -1.37 -0.64%

In deals, cybersecurity company NortonLifeLock Inc. agreed to buy London’s Avast Plc for as much as $8.6 billion in cash and stock. The deal, if closed, would form a cybersecurity behemoth that provides service for more than 500 million customers. 

Ticker Security Last Change Change %
NLOK NORTONLIFELOCK, INC. 26.67 +0.38 +1.45%

In earnings, crypto exchange Coinbase Global Inc. reported quarterly profit that exceeded Wall Street estimates as trading volumes surged 38% from a year ago. The company forecast a year-over-year decline in trading volumes for the current quarter. 

Ticker Security Last Change Change %
COIN COINBASE GLOBAL, INC. 300.84 +0.83 +0.28%

Wendy’s Co. said same-store sales increased 16.1% year over year, ahead of analysts’ expectations, as reduced restrictions provided a lift. The fast-food chain also raised its forecast for global system-wide sales.

Ticker Security Last Change Change %
WEN THE WENDY'S CO. 22.59 +0.17 +0.76%

In commodities, West Texas Intermediate crude oil ticked up 96 cents to $69.25 a barrel after the White House called on OPEC to increase production to support the economic recovery. Meanwhile, gold rose $21.60 to $1,750.40 an ounce. 

Overseas markets were broadly higher. 

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Britain’s FTSE 100 paced the gains in Europe, trading up 0.83%, while France’s CAC 40 and Germany’s DAX 30 advanced 0.55% and 0.35%, respectively. 

In Asia, Japan’s Nikkei 225 climbed 0.65%, Hong Kong’s Hang Seng index jumped 0.2% and China’s Shanghai Composite edged up 0.08%.