Stocks in U.S. Hit the Ground Running
Updated from 8:06 a.m. EDT
Stocks in the U.S. were climbing at the open Wednesday amid cooler-than-expected inflationary data and improved results at Freddie Mac (FRE).
The Dow Jones Industrial Average was rising 42 points to 12,875, and the S&P 500 was adding 6 points to 1409. The Nasdaq Composite was tacking on 7 points to 2502.
Stock index futures had been signaling a decline prior to the opening bell, but reversed course after the Labor Department said that, despite a 0.9% jump in food costs -- the biggest advance in nearly two decades -- April consumer prices rose only 0.2% from the prior month. The core consumer price index, which excludes food and energy, ticked up 0.1%, half of the expected increase. The overall number was estimated to have risen 0.3%.Year over year, core consumer inflation was up 2.3%, a hair lower than anticipated, while the overall CPI climbed 3.9% from a year ago. Energy prices, the government said, were unchanged from March. On the equities side, among the early winners was government-sponsored mortgage buyer Freddie Mac, which said its first-quarter loss narrowed to $151 million, or 66 cents a share, from the prior quarter's loss of $3.97 a share. The stock rose 7.3%. However, chipmaking-equipment seller Applied Materials (AMAT) slipped 2.2% after reporting dwindling earnings. Revenue nonetheless topped analyst expectations. In a conference call, CEO Mike Splinter predicted more softness in chip-related spending, but predicted that "this is the bottom." Electronic Arts (ERTS), a video-game publisher, offered a weaker full-year profit outlook than that targeted by Wall Street. The company also came in well ahead of expectations for the fiscal fourth quarter with adjusted earnings of $30 million, or 9 cents a share, on 50% higher sales. Still, shares lost 0.7%.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV