Kroger reports mixed Q2, U.S. CPI rises 0.4% in August: Morning Buzz

The major averages were broadly higher near noon following U.S. CPI data that could potentially influence the Federal Reserve’s future decisions on interest rates. The CPI reading came in hotter than expected on a monthly basis, though was in line with estimates on an annual basis.

In international news, the European Central Bank kept its three key interest rates unchanged, with the Governing Council saying it is “determined to ensure” that inflation stabilizes at 2% in the medium term. 

Looking to commodities, oil prices were dropping following yesterday’s gains, influenced by signs of weakening U.S. demand and rising inventories. Gold prices, meanwhile, were fractionally lower though still near record highs.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.

1. STOCK NEWS:

• Kroger (KR) reported mixed Q2 results and narrowed its FY25 earnings outlook
• Delta (DAL) reaffirmed its Q3 and FY25 earnings outlook, saying it sees the fall season being “quite solid” in terms of corporate booking demand
• The U.S. consumer price index rose 0.4% in August, marking the biggest gain since January
• Meanwhile, U.S. initial unemployment claims surged 27,000 to 263,000 in the week ended September 6
• The European Central Bank kept its three keydowngraded Apple (AAPL) to Neutral as it was “uninspired” by new products while Phillip Securities cut Apple to Reduce
• Nvidia (NVDA) upgraded to Buy at DA Davidson on growth in AI compute demand
• Deutsche Bank and Seaport Research upgraded Chewy to Buy
• BofA downgraded UPS (UPS) to Underperform and FedEx (FDX) to Neutral due to increased pressure on volume and costs following the end of U.S. de minimis exemptions
• Goldman Sachs initiated coverage of Celsius Holdings (CELH) with a Buy rating

3. AROUND THE WEB:

• Google (GOOGL) has scrapped multi-cloud data transfer fees for organizations in the EU and the UK, ahead of the EU Data Act taking effect on September 12, Reuters reports
• JPMorgan (JPM) is accelerating hiring across its business in the Asia Pacific region, with the intention of increasing its headcount by 20% next year, Reuters says
• Volkswagen (VWAGY) vowed to defend its lead in the European market against Chinese competition “by all means,” FT says
• Wolfpack Research published a short report on Faraday Future (FFAI), calling the company a “house of cards”
• PNC Financial (PNC) CEO Bill Demchak is working to turn the bank into a trillion-dollar giant, WSJ says

4. MOVERS:

• Maze Therapeutics (MAZE) higher after providing results from its Phase 1 trial of MZE782
• Opendoor (OPEN) gains after naming Kaz Nejatian as CEO
• Red Cat (RCAT) increases after announcing its Black Widow System has been approved and added to the NATO Support and Procurement Agency catalogue
• Avidity Biosciences (RNA) lower after announcing a $500M share offering
• Enovix (ENVX) falls after announcing a $300M offering of senior notes

5. EARNINGS/GUIDANCE:

• Lovesac (LOVE) reported Q2 results and provided guidance for Q3 and FY26
• Centene (CNC) backed its guidance for FY25
• Vera Bradley (VRA) reported Q2 results, with EPS and revenue lower year-over-year
• Alliance Entertainment (AENT) reported Q4 results, with CEO Jeff Walker commenting, “Fiscal 2025 marked another year of solid execution”
• Oxford Industries (OXM) reported Q2 results and backed its guidance for FY25

INDEXES:

Near midday, the Dow was up 1.26%, or 574.93, to 46,065.85, the Nasdaq was up 0.71%, or 154.49, to 22,040.55, and the S&P 500 was up 0.82%, or 53.57, to 6,585.61.