Banks began earnings reporting, and mixed economic data raised hopes for an interest rate cut in September as our trading session ended July 12.
The Labor Department said that wholesale prices rose in June higher than expected. At 2.6%, it was the biggest year-over-year increase since March 2023.
The producer price index increased 0.2% from May to June.
Conversely, the department’s report on consumer prices showed cooling, with prices down 0.1% from May to June; for the year, prices were up 3% in June, lower than the 3.3% annual rate in May. It was the first drop in overall inflation since May 2020.
Homeownership and rental costs increased at a 3% rate from May to June, the smallest increase in three years. Those costs comprise over one-third of the consumer price index. A separate report from the department said that applications for unemployment benefits slid by 17,000, to 222,000.
“The big picture is that inflation pressures have moderated over the last two years but are still a bit stronger than the Fed would like them to be,” said Bill Adams, chief economist at Comerica Bank. “With the economy operating in low gear, the Fed thinks the right time to start cutting interest rates is close. But they are planning to cut gradually.”
The Journal Record Stock Index added 45.34 points, or 1.96%, and closed at 2,355.90, with advancing issues dominating declining issues by a 9-to-1 margin.
BOK Financial jumped 7.15 points, or 8.10%. The Royal Bank of Canada increased its price target for BOKF to $99, from $98. Their rating on the stock is “sector perform.” BOKF closed at 95.43, and was the top percentage gainer.
News that Devon Energy plans to purchase Grayson Mill Energy’s Williston basin assets sent DVN south, and the stock lost 0.55 points, or 1.17%. Devon inked a deal for the company’s oil and gas resources for $5 billion in a cash and stock deal. The transaction is expected to close by the end of the third quarter. DVN ended at 46.48, and was the top dollar and percentage loser.
Paycom Software added 6.47 points, or 4.56%. Paycom CEO Chad Richison sold 1,950 shares of Paycom stock for an average price of 140.20. Richison now owns 3,023,708 shares of PAYC, valued at $423,923,861.60, in a filing revealed by the Securities and Exchange Commission. PAYC closed at 148.43.
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