Snowflake Inc. SNOW shares are on the rise Tuesday. The upward movement in Snowflake’s stock is part of a broader rally within the technology sector, driven by overall market strength following the release of softer-than-expected Producer Price Index (PPI) figures for July 2024.
Why is the Stock Moving?
The key catalyst behind the market’s positive sentiment is the recent PPI report, which showed a slower-than-expected rise in producer prices. The PPI for final demand increased by only 0.1% month-over-month, below economists’ expectations of a 0.2% increase. On an annual basis, the PPI rose by 2.2%, also below the anticipated 2.3%. The deceleration in producer prices has bolstered market expectations for potential Federal Reserve rate cuts, which is particularly favorable for technology and growth stocks like Snowflake.
Earnings Preview: Investors are also positioning themselves ahead of Snowflake's upcoming second-quarter earnings report, scheduled for release after the market closes on August 21 2024. The company is expected to report earnings per share (EPS) of 16 cents and revenue of $849.70 million.
SNOW Price Action: Snowflake shares were up by 3.36% at $127.16 according to Benzinga Pro.
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