Stocks Hold Steady as Wall Street Prepares for Fresh Inflation Data

Traders on the floor of the New York Stock Exchange experienced a day of little change on Wednesday as the market attempted to recover from the previous session’s decline. The S&P 500 and Nasdaq Composite saw marginal gains, while the Dow Jones Industrial Average fell slightly. One notable stock that surged was Penn Entertainment, which rose 14% after announcing its partnership with ESPN to launch an online sportsbook called ESPN Bet. However, Roblox tumbled more than 20% after missing Wall Street expectations for its second quarter.

Investors are eagerly awaiting the release of fresh inflation data later in the week, with the consumer price index reading for July scheduled for release on Thursday. Economists predict that the inflation gauge rose 3.3% in July.

Tuesday’s trading session saw stocks struggle, with the Dow closing 0.45% lower, the S&P 500 falling by 0.42%, and the Nasdaq Composite sliding 0.79%. Moody’s downgrade of several regional banks dampened investor sentiment, leading to concerns about potential trouble for the markets. However, some market participants believe the pullback is expected given the extraordinary rally in equities this year.

Entertainment giant Disney and casino operator Wynn Resorts are set to post their quarterly results after the market closes. As of Wednesday morning, more than 90% of S&P 500 stocks have reported earnings, and over four-fifths of those who have posted results have exceeded Wall Street’s expectations.

In pre-market trading, shares of Roblox fell sharply after the company’s second-quarter bookings came in below expectations. The company reported a loss of 46 cents per share on $781 million of bookings, widening its net loss to $282.8 million from $176.4 million a year ago.

Other companies making headlines before the bell include WeWork, which saw its stock plunge 25.7% after expressing doubt about its ability to continue operating amid weaker-than-expected membership rates. Online used-car retailer Carvana added 7.4% before the bell after raising its adjusted EBITDA forecast for the third quarter. Ride-hailing company Lyft saw its shares drop almost 6% premarket after announcing its second-quarter earnings.

Analysts believe electric vehicle maker Rivian still has a prolonged path toward profitability, despite reporting a smaller-than-expected quarterly loss and raising its forecast for full-year vehicle deliveries.

Japanese optics and imaging manufacturer Nikon saw its shares tumble as much as 17% after reporting a significant drop in net profit for the first quarter.

South Korea’s unemployment rate climbed to 2.7% in July, up from 2.6% the previous month, but down 0.2 percentage points compared to the same period last year.

Overall, the stock market is currently in a “purgatory zone,” according to Adam Crisafulli of Vital Knowledge. He believes that valuation constraints are preventing a sustained close above 4600 in the near-term, while favorable macro news flow is preventing a sharp break below ~4400.

Investors will continue to closely monitor market developments and upcoming economic data as they navigate the current trading environment.Traders on the floor of the New York Stock Exchange experienced a day of little change on Wednesday as the market attempted to recover from the previous session’s decline. The S&P 500 and Nasdaq Composite saw marginal gains, while the Dow Jones Industrial Average fell slightly.

One notable stock that surged was Penn Entertainment, which rose 14% after announcing its plans to launch an online sportsbook with ESPN called ESPN Bet this fall. However, Roblox tumbled more than 20% after missing Wall Street expectations for its second quarter.

Investors are eagerly awaiting the release of fresh inflation data later in the week, with the consumer price index reading for July scheduled for release on Thursday. Economists are predicting a 3.3% rise in the inflation gauge for July.

Tuesday’s trading session saw stocks struggling, with the Dow closing 0.45% lower, the S&P 500 falling by 0.42%, and the Nasdaq Composite sliding 0.79%. Moody’s downgrade of several regional banks dampened investor sentiment, leading to concerns about potential trouble for the markets. However, some market participants believe the pullback is expected given the significant rally in equities this year.

In other news, entertainment giant Disney and casino operator Wynn Resorts are set to post their quarterly results after the market closes. As of Wednesday morning, more than 90% of S&P 500 stocks have reported earnings, with over four-fifths of those exceeding Wall Street’s expectations.

Overall, the stock market remains in a state of uncertainty, with traders cautiously navigating the current economic landscape.

How did Penn Entertainment perform after announcing its partnership with ESPN?

Any significant upward or downward movement. Traders at the New York Stock Exchange experienced a relatively uneventful day on Wednesday as the market aimed to recover from the previous session’s decline. The S&P 500 and Nasdaq Composite saw minor gains, while the Dow Jones Industrial Average dipped slightly. One notable stock that performed well was Penn Entertainment, which surged 14% after announcing its partnership with ESPN to launch ESPN Bet, an online sportsbook. However, Roblox experienced a significant drop of over 20% after falling short of Wall Street expectations for the second quarter.

Investors are anxiously awaiting the release of fresh inflation data later this week, particularly the consumer price index reading for July, scheduled to be released on Thursday. Economists are predicting a 3.3% increase in the inflation gauge for July.

On Tuesday, stocks struggled, with the Dow closing 0.45% lower, the S&P 500 falling by 0.42%, and the Nasdaq Composite sliding 0.79%. Moody’s downgrade of several regional banks dampened investor sentiment and raised concerns about potential troubles for the markets. However, some market participants feel that the pullback is expected given the extraordinary rally in equities throughout this year.

Entertainment giant Disney and casino operator Wynn Resorts will be posting their quarterly results after the market closes. As of Wednesday morning, more than 90% of S&P 500 stocks have reported earnings, and over four-fifths of those have exceeded Wall Street’s expectations.

In pre-market trading, shares of Roblox sharply declined following the company’s second-quarter bookings falling below expectations. The company reported a loss of 46 cents per share on $781 million of bookings, widening its net loss to $282.8 million from $176.4 million compared to the previous year.

Other companies making headlines before the opening bell include WeWork, which saw a 25.7% decline in its stock after expressing doubts about its ability to continue operating due to weaker-than-expected membership rates. Online used-car retailer Carvana gained 7.4% before the bell after raising its adjusted EBITDA forecast for the third quarter. Ride-hailing company Lyft saw its shares drop almost 6% premarket after announcing its second-quarter earnings.

Analysts believe that electric vehicle maker Rivian still has a long path to profitability, despite reporting a smaller-than-expected quarterly loss and raising its forecast for full-year vehicle deliveries.

Japanese optics and imaging manufacturer Nikon witnessed a significant drop in net profit for the first quarter, causing its shares to tumble by as much as 17%.

South Korea’s unemployment rate increased to 2.7% in July, up from 2.6% the previous month, but down 0.2 percentage points compared to the same period last year.

Overall, Adam Crisafulli of Vital Knowledge describes the current stock market as being in a “purgatory zone,” suggesting that valuation constraints are preventing any significant movement in either direction.