Deep Dive: These stocks soared up to 12% after inflation cooled

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Amid the euphoria following what appeared to be the first sign of slowing inflation, stocks staged a broad rally on Aug. 10, with dozens of large-cap stocks rising 5% or more.

Those included several tech names that investors loved during the early stages of the coronvirus pandemic, along with cruise lines, credit-card lenders and chip-related companies.

A list of the day’s best performers among the S&P 500 Index SPX, +2.13% and the Nasdaq-100 Index NDX, +2.85% is below.

The S&P 500 rose 2.1% and is up 12% since its 2022 closing low on June 22. The benchmark index is still down 11.7% this year.

The strong showing followed a report from the Bureau of Labor Statistics saying the Consumer Price Index was unchanged in July from June after rising 1.3% in June from May, and decelerated to an annual 8.5% in July from 9.1% the previous month.

Greg Robb provided further analysis of what the better-than-expected inflation report might mean for interest rates when the Federal Open Market Committee has its next meeting Sept. 20-21, which will be followed by a decision on the fed funds rate and the Federal Reserve’s investment policy.

All 11 sectors of the S&P 500 were up for the day:

Index Price change – Aug. 10 Price change since S&P 500 closing low June 22 Price change – 2022
Materials 2.9% 6.3% -12.4%
Consumer Discretionary 2.9% 20.4% -18.2%
Information Technology 2.8% 16.8% -15.1%
Communication Services 2.8% 6.8% -25.4%
Financials 2.3% 10.3% -11.6%
Industrials 2.2% 13.3% -7.6%
Real Estate 1.4% 12.0% -13.3%
Health Care 1.1% 6.7% -5.9%
Consumer Staples 0.7% 6.6% -3.2%
Energy 0.7% 2.7% 35.9%
Utilities 0.5% 13.8% 5.4%
S&P 500 2.1% 12.0% -11.7%
Source: FactSet

The Nasdaq-100 includes the largest 100 non-financial stocks in the full Nasdaq Composite Index COMP, +2.89%. When added to the S&P 500, the group expands to 518 stocks, 92% of which posted gains on Aug. 10.

Here are the day’s 20 best performers in this expanded large-cap group — many are still down by high double digits from their one-year highs:

Company Ticker Price change – Aug. 10 Price change since June 22 Price change – 2022 Decline from 52-week high Date of 52-week intraday high
Norwegian Cruise Line Holdings Ltd. NCLH, +12.07% 12.1% 18.2% -34.6% -54.0% 11/05/2021
Zscaler Inc. ZS, +10.40% 10.4% 21.0% -43.9% -52.0% 11/19/2021
Royal Caribbean Group RCL, +9.77% 9.8% 13.6% -45.8% -57.6% 11/08/2021
Carnival Corp. CCL, +9.19% 9.2% 7.5% -48.6% -62.2% 09/27/2021
SVB Financial Group SIVB, +7.74% 7.7% 13.0% -33.3% -40.7% 11/16/2021
DocuSign Inc. DOCU, +7.72% 7.7% 21.5% -50.5% -76.0% 08/10/2021
CrowdStrike Holdings Inc. Class A CRWD, +7.51% 7.5% 21.2% -1.9% -32.7% 11/10/2021
Etsy Inc. ETSY, +7.38% 7.4% 57.8% -46.6% -62.0% 11/26/2021
Datadog Inc Class A DDOG, +7.29% 7.3% 29.3% -33.9% -41.0% 11/17/2021
Marvell Technology Inc. MRVL, +7.28% 7.3% 18.5% -37.1% -41.4% 12/08/2021
MercadoLibre Inc. MELI, +6.90% 6.9% 57.1% -21.1% -46.0% 09/02/2021
Teradyne Inc. TER, +6.78% 6.8% 8.5% -39.4% -41.3% 12/28/2021
Qorvo Inc. QRVO, +6.63% 6.6% 14.4% -30.3% -44.1% 08/09/2021
Zoom Video Communications Inc. Class A ZM, +6.38% 6.4% -2.7% -39.1% -71.5% 08/10/2021
Generac Holdings Inc. GNRC, +6.32% 6.3% 22.1% -26.2% -50.5% 11/02/2021
Netflix Inc. NFLX, +6.16% 6.2% 36.5% -59.5% -65.2% 11/17/2021
Discover Financial Services DFS, +5.99% 6.0% 14.8% -6.6% -20.4% 08/13/2021
Albemarle Corp. ALB, +5.98% 6.0% 19.9% 10.9% -11.0% 11/22/2021
Capital One Financial Corp COF, +5.98% 6.0% 6.7% -22.3% -36.6% 08/13/2021
Aptiv PLC APTV, +5.93% 5.9% 15.8% -36.1% -41.7% 11/04/2021
Source: FactSet

Click on the tickers for more about each company.

Click here for Tomi Kilgore’s detailed guide to the wealth of information for free on the MarketWatch quote page.

Despite all the good cheer among investors, economists at Pimco warned that core inflation might increase again in August, and BlackRock’s chief investment officer for global fixed income agreed with the Pimco economists that the Fed was still likely to increase the federal funds target range by another 0.75% in September.

Rex Nutting cautioned that one month of inflation data might not yet signal a trend because of the continuing increase in rents.

Read on: 10 defensive stocks that can also provide you with growth and dividends over the long term

This article was originally published by Marketwatch.com. Read the original article here.

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