Hello dear readers! Today, we have some exciting developments in the world of stocks that are sure to pique your interest. Let's dive right into the details.
First, let's talk about the U.S. stock market, which wrapped up a rather volatile week on a positive note last Friday. The latest inflation data didn't dash hopes for an interest rate cut next month. The personal-consumption expenditures price index, or PCE, showed a steady 2.5% rise in July, meeting economists’ expectations as reported by The Wall Street Journal. This steady reading is crucial as it is the Federal Reserve's preferred inflation gauge.
Major stock indexes responded positively. The S&P 500 rose by 1%, while the Nasdaq Composite saw a 1.1% increase. Among the notable tech stocks, Dell, Marvell Technology, and MongoDB made significant gains following their quarterly reports.
However, the most intriguing movement came from Intel, a company that has been a staple in the chip industry. Intel's stock jumped by an impressive 9.5% following a report by Bloomberg suggesting that the company is collaborating with investment bankers to evaluate strategic options, including a potential breakup of the troubled company. This news made Intel the largest gainer on both the S&P 500 and the Dow, which also saw a rise of 228 points, or 0.6% by the close of the day.
Intel's stock, priced at $22, is significantly lower than the average price on the price-weighted index. Yet, the Dow's gains were also buoyed by a late surge from Goldman Sachs, the second most expensive stock on the index. According to a late-day report by the Wall Street Journal, Goldman Sachs plans to lay off over 1,300 workers following an annual performance review.
For the week, the S&P 500 rose by 0.2%, marking its third consecutive week of gains. The Dow increased by 0.9%, while the Nasdaq experienced a slight decline of the same amount.
In other news, the global food giant Nestlé has been in the spotlight due to its management changes amidst a disturbing share slump. This move could potentially make Nestlé an attractive buy for investors.
On the tech front, Dell's strategic moves to boost profit margins in its server business might just help the IT giant regain some of its AI appeal. This aligns with the broader trends in the tech industry, where companies are increasingly focusing on AI-driven growth strategies.
Looking ahead, next week promises to be interesting as well, with the Labor Department's jobs report for August set to be released on Friday. This report will provide further insights into the economic landscape and could influence market movements.
That's all for today, folks! Stay tuned for more updates and happy investing!
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