US: Stocks eke out gains after latest inflation data

WALL Street stocks edged higher on Thursday after US data showed consumer inflation inched up in July, broadly in line with expectations.

Although inflation picked up for the first time in around a year, at an annual rate of 3.2 per cent, the moderate figure could support the case that the central bank can hold rates steady at its next policy meeting.

The inflation number “was adequate, not great,” said Steve Sosnick of Interactive Brokers.

“The Fed will continue to strike a hawkish tone because it wants to prevent financial market conditions from easing,” said a note from Oxford Economics. “Still, we expect the Fed to skip rate hikes in September and November when inflation should decelerate.”

The Dow Jones Industrial Average finished up 0.2 per cent at 35,176.15.

The broad-based S&P 500 rose less than 0.1 per cent to 4,468.83, while the tech-rich Nasdaq Composite Index added 0.1 per cent at 13,737.99.

SEE ALSO

US: Wall St rises as July inflation data fuels Fed rate pause hopes

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

Shares of the fashion company Capri Holdings, which owns luxury brands including Michael Kors, surged by more than 55 per cent as it agreed to be acquired by Coach owner Tapestry for US$8.5 billion.

Tapestry’s shares, meanwhile, fell by almost 16 per cent on concerns about the lofty price tag, which will require the buyer to take on more debt.

Disney jumped nearly five per cent despite reporting a US$460 million loss as chief executive Bob Iger highlighted recent price hikes on its streaming products and cost-cutting actions expected to improve profitability. AFP