14 Stocks Gain Momentum As August Inflation Comes In Below Expectations

In August, the Federal Reserve's preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index, rose 2.2% year-over-year, coming in below analyst expectations of 2.3%. That’s down from July's 2.5%.

The core PCE, which excludes volatile food and energy prices, increased by 2.7% year-over-year, matching forecasts and slightly higher than July's 2.6%.

This decline in overall inflation, despite steady core inflation, suggests a potential easing of price pressures, even as costs for services like housing and financial services continue to rise.

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Following Friday’s PCE report, these 14 stocks showed strong momentum in premarket trading, according to Benzinga Pro:

• Bristol-Myers Squibb Co. BMY rises 3.6% to $51.94.
• PPD Holdings Inc. PDD climbs 3.8% to $134.14.
• JD.com Inc. JD is up 3.3% to $39.38.
• Equinor ASA EQNR gains 2.8% to $24.89.
• Anheuser-Busch InBev SA/NV BUD advances 1.5% to $66.52.
• NetEase Inc. NTES lifts 1.7% to $92.69.
• Nu Holdings Ltd. NU jumps 1.3% to $14.00.
• Tesla Inc. TSLA rockets 1.1% to $257.16.
• Alibaba Group Holding Ltd. BABA moves 0.9% higher to $105.80.
• BP p.l.c. BP ticks up 0.9% to $31.07.
• PayPal Holdings Inc. PYPL soars 1.1% to $81.03.
• General Motors Co. GM inches up 0.9% to $46.24.
• Lennar Corporation LEN posts a rise of 1.07% to $185.01.
• Micron Technology Inc. MU registers a boost of 0.7% to $110.69.

Rising costs in services, particularly in housing, financial services, and insurance, were the key drivers of inflation, pushing the overall PCE index higher. While service prices surged, goods prices saw a slight decline, helping to offset some of the inflationary pressure. Meanwhile, falling energy prices, especially gasoline, provided additional relief compared to previous periods of stronger inflationary impact from energy.

Food prices increased modestly, primarily in off-premises consumption like groceries, but their effect on inflation was smaller compared to services.

Core inflation, which excludes food and energy, remained steady due to ongoing price increases in durable goods and essential services. Despite minor declines in goods prices, rising service costs kept core inflation elevated.

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