US Stock Market Rally on August 10, 2023: Consumer Inflation Rises Less Than Forecast
On August 10, 2023, U.S. stocks surged midday following Labor Department data showing consumer inflation increased less than expected in July, boosting market confidence.
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Highlights
- U.S. stock indices climbed midday on August 10, 2023, driven by July's consumer price index rising slower than anticipated.
- Walt Disney shares led the Dow's gains, fueled by price hikes for its Disney+ streaming service and stricter password sharing policies.
- Tapestry shares declined sharply after announcing the $8.5 billion acquisition of rival Capri Holdings.
Following the Labor Department's report revealing a smaller-than-expected year-over-year increase in consumer prices for July, U.S. equities showed strong midday performance. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all registered gains by noon, although the S&P 500 later retraced some of its advances.
The majority of Dow components rose, with Walt Disney (DIS) standing out as the top performer after unveiling plans to raise Disney+ subscription fees and clamp down on password sharing. Global Payments (GPN) also gained momentum after Jefferies upgraded the stock and raised its price target, citing the company's ability to overcome market uncertainties.
Axon Enterprise (AXON) shares extended gains for a second consecutive day following stronger-than-expected earnings and an optimistic outlook driven by soaring cloud services sales. Similarly, FleetCor Technologies (FLT) benefited from robust earnings and revenue results, coupled with an upward revision of its guidance based on increased fuel card revenue.
Tapestry (TPR) shares dropped significantly after announcing the acquisition of Capri Holdings (CPRI) for $8.5 billion, which caused Capri's stock to surge. General Motors (GM) shares declined following comments from CFO Paul Jacobson about challenges in electric vehicle battery module assembly impacting production. Ralph Lauren (RL) shares also fell amid warnings of reduced discretionary spending by American consumers.
Meanwhile, oil and gold futures saw declines, the 10-year Treasury yield increased, and the U.S. dollar weakened against the euro and pound but strengthened versus the yen. Most leading cryptocurrencies experienced price drops.
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