S&P 500, Nasdaq Fly Higher As CPI Data Shows July Inflation Rose Less Than Expected

Zinger Key Points
  • Coinbase reported a net loss of more than $1 billion on Tuesday.
  • Elon Musk sold nearly 8 million shares of Tesla, worth $6.9 billion.
S&P 500, Nasdaq Fly Higher As CPI Data Shows July Inflation Rose Less Than Expected

All Eyes On CPI: The S&P 500 and Nasdaq were up over 67 points and 256 points, respectively, Wednesday in reaction to July’s CPI number, the Consumer Price Index.

CPI rose 8.5% year over year in July. The consensus estimate is 8.7% year-over-year inflation, compared to 9.1% for June. 

A slowing inflation picture to many indicates that the Federal Reserve will likely be less aggressive in raising interest rates, which will provide support for the economy, and by extension stocks.  

 

More Trouble At Coinbase?: Coinbase Global Inc COIN, one of the largest crypto exchanges in the world, reported earnings after the close yesterday. The company reported a net loss of more than $1 billion, and reported a revenue of about $808 million, missing the estimates of $832 million. 

CoinFlip CEO Ben Weiss thinks that Coinbase’s stock could potentially have upside from here. 

“The crypto market has seen a lot of volatility, deleveraging, and downward pressure on crypto asset price,” Weiss said. "I feel that the market is conflating the performance of crypto assets with the companies in the crypto ecosystem, and therefore the reduction in Coinbase stock price is possibly an overcorrection."

In Other News: Elon Musk sold nearly 8 million shares of Tesla Inc TSLA, worth $6.9 billion, according to filings released last night. He then took to Twitter to say that he is done selling (which he also said back in April) and that he did so in case he is forced to buy Twitter and other investors back out. 

Photo: Courtesy of RosieTulips on flickr

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