US close: Stocks log winning session following July CPI reading

(Sharecast News) - Major indices recorded sharp gains on Tuesday as traders digested last month's consumer price index. At the close, the Dow Jones Industrial Average was up 1.10% at 44,458.61, while the S&P 500 1.13% at 6,445.76, and the Nasdaq Composite saw out the session 1.39% stronger at 21,681.90.

The Dow closed 483.52 points higher on Tuesday, more than reversing losses recorded in the previous session.

Tuesday's primary focus was news that US consumer prices edged higher in July, according to the Bureau of Labor Statistics. Headline CPI rose by 0.2% month-on-month, down from June's 0.3% increase, while on an annual basis, inflation held steady at 2.7%, suggesting that while underlying pressures remained, particularly in shelter and services, the broader inflation picture may be stabilising. However, core CPI, which strips out volatile food and energy prices, climbed 0.3% in July, accelerating from June's 0.2% increase and lifting the year-on-year rate to 3.1%, up from 2.9%.

July's CPI reading comes ahead of the Federal Open Markets Committee's September policy meeting, and also increases the likelihood that central bank will cut interest rates, and lands as investors mull over recent developments on the trade front, with Donald Trump extending a 90-day pause on higher levies on Chinese goods yet again.

Tuesday's CPI also lands amid heightened scrutiny of the Bureau of Labor Statistics after Donald Trump fired commissioner Erika McEntarfer earlier in August, claiming that she "RIGGED" jobs figures to make both him and Republicans "look bad".

Elsewhere on the macro front, the National Federation of Independent Business's small business optimism index rose to 100.3 in July, up from 98.6 in June for the highest reading in five months. There was a notable improvement in overall business health, with the net percentage of owners expecting better business conditions rising to 36%, while 11% reported that inflation was the single biggest issue in operating their businesses.

No major corporate earnings were released on Tuesday.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Dow Chemical Co. (DOW) $21.76 4.29% Intel Corp. (INTC) $21.47 3.97% Goldman Sachs Group Inc. (GS) $745.81 3.69% Unitedhealth Group Inc. (UNH) $260.65 3.28% Boeing Co. (BA) $232.04 2.69% Caterpillar Inc. (CAT) $417.81 2.27% Nike Inc. (NKE) $75.68 2.25% American Express Co. (AXP) $302.54 2.13% Home Depot Inc. (HD) $395.17 1.97% Chevron Corp. (CVX) $155.91 1.60%

Dow Jones - Fallers

International Business Machines Corporation (CDI) (IBM) $234.00 -0.97% McDonald's Corp. (MCD) $301.40 -0.97% Johnson & Johnson (JNJ) $172.55 -0.73% Amgen Inc. (AMGN) $283.20 -0.66% Coca-Cola Co. (KO) $70.47 -0.40% Salesforce.Com Inc. (CRM) $232.00 -0.29% Merck & Co. Inc. (MRK) $79.99 -0.05% Travelers Company Inc. (TRV) $264.20 -0.02% Dowdupont Inc. (DWDP) $0.00 0.00% Procter & Gamble Co. (PG) $155.03 0.03%

S&P 500 - Risers

Hanesbrands Inc. (HBI) $6.05 25.36% American Airlines Group (AAL) $12.71 9.72% Alaska Air Group Inc. (ALK) $56.07 9.64% Delta Airlines Inc. (DAL) $58.33 9.03% United Airlines Holdings Inc (UAL) $97.22 8.83% Microchip Technology Inc. (MCHP) $66.21 8.64% Kohls Corp. (KSS) $12.93 5.86% Macerich Co (MAC) $17.58 5.52% Macy's Inc. (M) $12.77 5.41% Texas Instruments Inc (TXN) $193.61 5.39%

S&P 500 - Fallers

Celanese Corp. (CE) $41.99 -11.44% Cardinal Health Inc. (CAH) $145.27 -7.86% Apartment Investment & Management Co. (AIV) $7.65 -3.29% McKesson Corp. (MCK) $651.14 -3.22% Welltower Inc (WELL) $162.93 -3.03% H&R Block Inc. (HRB) $52.82 -2.99% CME Group Inc. (CME) $277.38 -2.93% Amer Water Works (AWK) $141.54 -2.76% Verisk Analytics Inc. (VRSK) $260.90 -2.44% Mosaic Company (MOS) $31.83 -2.06%

Nasdaq 100 - Risers

American Airlines Group (AAL) $12.71 9.72% Microchip Technology Inc. (MCHP) $66.21 8.64% Texas Instruments Inc (TXN) $193.61 5.39% Analog Devices Inc. (ADI) $234.19 4.52% Intel Corp. (INTC) $21.47 3.97% Take-Two Interactive Software Inc. (TTWO) $230.91 3.70% DENTSPLY Sirona Inc. (XRAY) $12.98 3.59% QUALCOMM Inc. (QCOM) $152.88 3.32% Illumina Inc. (ILMN) $97.92 3.31% Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $514.97 3.26%

Nasdaq 100 - Fallers

Qvc Group Inc Series A (QVCGA) $4.28 -7.72% Verisk Analytics Inc. (VRSK) $260.90 -2.44% O'Reilly Automotive Inc. (ORLY) $102.03 -1.52% Amgen Inc. (AMGN) $283.20 -0.66% Paychex Inc. (PAYX) $137.76 -0.61% Tesla Inc (TSLA) $337.03 -0.59% Costco Wholesale Corp. (COST) $982.91 -0.59% Autodesk Inc. (ADSK) $282.96 -0.58% Workday, Inc. (WDAY) $212.86 -0.39% Cintas Corp. (CTAS) $223.09 -0.35%