Inflation cools slightly in July. And Elon Musk just “cashed in” on Tesla. It’s still bad, but not as bad. That’s the thought as investors cheer a lighter-than-expected inflation report.
The Dow gained 535 to close at 33,309
The S&P was up over 2%, gaining 87.
The Nasdaq almost 3%, or 360 points.
Back to the Consumer Price Index – it rose a better than expected 8.5% year-over-year for July, and was flat compared to June. While investors took a deep sigh of relief, economists were more skeptical, saying the pace of pricing remains much too high. They expect the Fed to continue to raise rates throughout the year.
We’re getting a break at the gas pump, but not at the grocery store. Food costs climbed another 1.1% in July. Food prices overall have gone up 11% over a year. Eggs jumped 38%. Cereals, baked goods, and dairy products are 15% higher. Fruits and veggies are up 9%.
Elon Musk just cashed about 8 million Tesla shares worth $7 billion. It comes as he fights Twitter over buying the company. Back in April, Musk said on social media he had “no further Tesla share sales planned.”
From Los Angeles, I’m Brian Martin with your BEONDTV After the Bell report.