Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.5%), Nasdaq Composite (+0.7%), and DJIA (-0.2%) are mostly higher just before midday as another tame inflation reading and lower oil prices set the stage for broad strength today, with the S&P 500 capturing a fresh all-time intraday high. 

Both total (0.0%; Briefing.com consensus: 0.1%) and core (0.2%; Briefing.com consensus: 0.3%) PPI came in slightly softer than expected for July, though there was a modest upward revision to the previous month's level. Combined with yesterday's in-line CPI report, the data have further eased concerns about additional Fed tightening. The probability of a 25-basis-point rate hike at the September FOMC meeting has fallen to 34.4% from 55.0% a week ago, providing a supportive policy backdrop for stocks.

Participation has been relatively broad as a result, with mega-cap and semiconductor names leading the S&P 500 to fresh record highs. However, the DJIA's weakness largely stems from Cisco' (CSCO 113.23, -10.65, -8.60%) sharp post-earnings retreat.

Lower oil prices have provided an additional tailwind for stocks, though the early retreat came without a headline catalyst, and oil has since narrowed its loss for the day. WTI crude is currently down $0.89 (-1.1%) to $82.35 per barrel.