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Stocks Higher Wednesday; Producer Prices Meet Expectations, Starbucks Surges on Reinvention Plan

Wednesday, September 14, 2022 04:19 PM | Nick Dey
Stocks Higher Wednesday; Producer Prices Meet Expectations, Starbucks Surges on Reinvention Plan

During trading Wednesday, 32 stocks traded to a 52-week high, while 179 stocks bottomed out at new 52-week lows. The S&P 500 is up 0.34% so far today while the Dow is up 0.1%, the Nasdaq is up 0.74%, and the Russell 2000 is down 0.08%.

Producer prices met expectations this afternoon, declining 0.1% as yearly inflation dipped to 8.7% from 9.8% in July. Core Producer Prices came in higher than expected with a 0.4% rise. This report contrasted yesterday's CPI report, which showed consumer prices unexpectedly rise in August as inflation remains broad-based and persistent.

Starbucks Corporation (SBUX) is advancing 5.53% after the company announced its "Reinvention Plan" at its investors day. The reinvention plan aims at boosting automation and efficiency in its stores with a $450 million investment in stores across the US. This includes: new coffee-making equipment for stores, better wages and benefits for nonunion employees, and an expanded loyalty program. The Seattle-based company also boosted its EPS projections to 15% to 20% annually over the next three years.

Nikola Corp (NKLA) is up 6.76% after the company was upgraded by BTIG Research, with its price target set at $12 - which is over double the stock's current price. Nikola stock has been battered since the release of the Hindenburg Short-Seller report that forced then-CEO Trevor Milton out of the company (and into the courtroom). BTIG analyst Gregory Lewis referred to the stock as a "nice call option" for EV investors, noting that hydrogen fuel cell vehicles are in their nascent stages. Lewis stated that the "inability of electricity to decarbonize heavy industries and long haul transportation" will accelerate hydrogen demand.

Sector Highlights

Energy stocks dominated our list of highs today with 10 out of the 32 total stocks that reached their high coming from the Energy sector. The Energy sector is outperforming the market, increasing 2.85% so far on the day. Over the last month, the Energy sector has outperformed the market, increasing 1.01% while the S&P decreased 8.12%.

Energy: CHK, DHT, EQT, FRO, FTI, INSW, LNG, PAGP, STNG, TNK

The Consumer Cyclical sector makes up the majority of our 52-week lows, as 39 out of our 179 lows comes from the Consumer Cyclical sector. The Consumer Cyclical sector is outperforming the market today, increasing 1.15% so far on the day. Over the last month, the Consumer Cyclical sector has outperformed the market, decreasing 7.42% while the S&P decreased 8.12%.

Consumer Cyclical: ARVL, BFAM, RENT, CATO, CONN, CRMT, CSV, CTRN, DS, EXPR, FFIE, FLWS, GES, GIII, HLLY, HZO, IP, KBAL, KMX, LAD, LE, LIDR, LL, LOVE, MHK, MLKN, MOV, NEGG, PATK, PLCE, SEE, SMP, BOXD, TCS, TILE, VRA, WHR, WISH, WRK

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