Why U.S. Stocks Are Trading Lower Following Producer Inflation Data

U.S. stocks traded lower this morning, following the release of economic reports on initial jobless claims and producer prices

Following the market opening Thursday, the Dow traded down 1.92% to 30,182.23 while the NASDAQ fell 2.01% to 11,021.66. The S&P also fell, dropping, 2% to 3,725.83.

Also check this: Markets In Extreme Fear With Rising Inflation Rates

Leading and Lagging Sectors

Consumer staples shares fell by just 1.1% on Thursday. Meanwhile, top gainers in the sector included Yatsen Holding Limited YSG, up 14% and Bridgford Foods Corporation BRID up 8%.

In trading on Thursday, energy shares dipped by 4.3%.

Top Headline

Producer prices for final demand rose 1.1% month-over-month in June, the mosy in three months and also above analysts’ expectations of 0.8%.

Equities Trading UP

SaverOne 2014 Ltd SVRE shares shot up 37% to $3.9501. SaverOne 2014 recently named Israel Eybi as Chief Marketing and Sales Officer.

Shares of Biomerica, Inc. BMRA got a boost, shooting 25% to $3.71 following news the company's breast self exam will now be available for sale in Walmart WMT.

Clene Inc. CLNN shares were also up, gaining 26% to $3.6393. Clene reported significantly improved survival in Amyotrophic lateral sclerosis (ALS) patients initially treated with CNM-Au8 compared to initially randomized placebo-treated participants during the long-term open-label extension of its RESCUE-ALS trial.

Equities Trading DOWN

ContraFect Corporation CFRX shares tumbled 81% to $0.5444 after the company announced the Data Safety Monitoring Board of the DISRUPT study recommended the trial be stopped for futility following an interim analysis.

Shares of Intelligent Living Application Group Inc. ILAG were down 51% to $2.99. Intelligent Living Application Group, on Wednesday, announced pricing of $20.24 million initial public offering.

Industrial Logistics Properties Trust ILPT was down, falling 24% to $10.61 after the company announced a reduction in its quarterly dividend from $0.33 to $0.01 per share.

Also check out: Why Is Ericsson Down By 9%? 22 Stocks Moving In Thursday's Pre-Market Session

Commodities

In commodity news, oil traded down 4.3% to $92.13, while gold traded down 2.1% to $1,699.00.

Silver traded down 5.9% to $18.07 on Thursday while copper fell 3.5% to $3.2075.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 1.9%, London’s FTSE 100 fell 2.1% while Spain’s IBEX 35 Index fell 2.2%. The German DAX dropped 2.4%, French CAC 40 fell 2.1% and Italy’s FTSE MIB Index fell 4%.

Wholesale prices in Germany increased by 21.2% year-over-year in June following a 22.9% increase in the prior month.

Economics

US initial jobless claims rose by 9 thousand to 244 thousand in the week ended July 9th, the highest since November 2021.

Producer prices for final demand rose 1.1% month-over-month in June, the mosy in three months and also above analysts’ expectations of 0.8%.

The Energy Information Administration’s weekly report on natural gas stocks in underground storage will be released at 10:30 a.m. ET.

The Treasury is set to auction 4-and 8-week bills at 11:30 a.m. ET.

Check out this: JPMorgan, Morgan Stanley And 3 Stocks To Watch Heading Into Thursday

COVID-19 Update

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 90,909,760 cases with around 1,047,790 deaths. India confirmed a total of at least 43,689,980 cases and 525,550 deaths, while Brazil reported over 33,076,770 COVID-19 cases with 674,550 deaths. In total, there were at least 564,289,700 cases of COVID-19 worldwide with more than 6,379,830 deaths.