Peloton Interactive Inc PTON shares are trading higher by 9.42% to $9.18 going into the close of Tuesday's session. The stock is trading higher on above-average volume, amid overall market strength and despite a lack of company-specific news. The stock is seeing strength as major indices are also higher ahead of Wednesday's June inflation data report.
What's Going On With Inflation Data?
The June CPI inflation report is eagerly anticipated as the most significant economic event of the week, with traders anxiously awaiting its release to gain insights into the Fed's future policy decisions.
Recent conflicting job market data has added to the uncertainty, with expectations of a rate hike in July, but doubts lingering regarding additional rate hikes later in the year. Currently, the market assigns probabilities of 22% for another rate rise in September and 34% in November...Read More
What Else?
Peloton operates in the consumer discretionary sector, providing fitness equipment and connected fitness subscriptions. Inflation can impact consumer spending patterns, especially discretionary purchases. Higher inflation may erode consumers' purchasing power, potentially leading to reduced demand for Peloton's products and services.
If investors believe that inflation will negatively impact Peloton's sales and profitability, they may adjust their positions, leading to heightened stock volatility.
According to data from Benzinga Pro, Peloton has a 52-week high of $17.83 and a 52-week low of $6.62.
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