Gilead Sciences, a biopharmaceutical company, saw its stock rise after Bank of America (BofA) upgraded its rating to “buy.” This upgrade comes as positive news for Gilead Sciences, as it indicates that BofA believes the company’s stock has the potential for further growth.
Kroger, a leading U.S. grocery retailer, also experienced gains in its stock after beating estimates for its second-quarter adjusted profit. This positive performance from Kroger demonstrates the company’s ability to navigate the challenges of the current economic climate and deliver strong financial results.
In broader market news, the major indexes ended the day with modest gains. The Dow Jones Industrial Average rose by 0.22%, the S&P 500 gained 0.14%, and the Nasdaq Composite added 0.09%. However, despite these daily gains, all three indexes posted weekly declines as investors expressed concerns about rising interest rates and awaited the upcoming U.S. inflation readings.
Investors have been particularly worried about the impact of rising oil prices and are eagerly awaiting the release of the Consumer Price Index (CPI) for August on September 13th. The CPI data will provide insights into the Federal Reserve’s likely moves on interest rates. While there is a high probability of the Fed keeping rates at current levels after its next meeting, there is a more divided chance for a pause at the November meeting.
The concerns around rising rates have been growing since early August, with investors questioning whether this could pose a risk to economic growth. Additionally, there are concerns about high valuations in equities, adding to the cautious sentiment among investors.
Despite these concerns, the technology sector managed to close higher, with Apple recording a small gain of 0.3% after a recent dip. The energy sector also performed well, boasting the biggest percentage gains among the 11 S&P 500 industry sectors due to rising oil prices.
Looking ahead, investors will closely monitor the upcoming CPI release for any signs of potential inflationary pressures that could impact the Federal Reserve’s decision-making on interest rates. Mixed comments from Fed officials have added to the uncertainty, further emphasizing the importance of upcoming economic data.
Overall, the market remains cautious as investors navigate through various economic indicators and assess the potential impact on future monetary policy decisions.