US STOCKS-Wall St ends higher, regaining ground as US inflation report nears

(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window.) * Berkshire climbs on record operating profit * Tyson Foods falls after missing sales estimates * Tesla down after CFO steps down (Updates to close) By David French Aug 7 (Reuters) - U.S. stocks closed higher on Monday, regaining some ground lost last week, as investors added positions ahead of Thursday's highly awaited U.S. inflation report.

U.S. stocks closed higher on Monday, regaining some ground lost last week, as investors added positions ahead of Thursday's highly awaited U.S. inflation report. The main stock indexes ended last week lower as investors took profits after months of gains due to worries over economic data, mixed earnings and rising Treasury yields.

U.S. stocks have sharply rallied in 2023, with the benchmark S&P 500 clocking 17% gains year to date, fueled by optimism around artificial intelligence and hopes of a soft landing for the world's largest economy. According to preliminary data, the S&P 500 gained 40.28 points, or 0.90%, to end at 4,518.31 points, while the Nasdaq Composite gained 84.73 points, or 0.61%, to 13,993.97. The Dow Jones Industrial Average rose 407.80 points, or 1.16%, to 35,473.42.

"I think you've got enough people that might be looking to put some money to work, because they've really missed a lot of this rally, so that will limit any downside (from bouts of profit-taking)," said Jack Janasiewicz, lead portfolio strategist at Natixis Investment Managers. He noted to expect some sideways trading in the near term, as profit-taking by investors who rode the rally balances out with those entering on any weakness.

While August trading is seasonally slower with summer vacations, set events and data releases can still offer investors new food for thought. On Thursday, the latest U.S. consumer price data is expected to offer clues about the Federal Reserve's monetary policy path, after Friday's employment report re-ignited fears that the central bank could keep rates higher for longer.

New York Fed President John Williams, a voting member this year, said he expects interest rates could begin to come down in early 2024, as per a report, while Governor Michelle Bowman said additional interest rate hikes will likely be needed to lower inflation to the 2% target. By advancing, the tech-heavy Nasdaq snapped a four-session losing streak, matching its longest negative run this year. It overcame weakness in Tesla, which dropped after the electric vehicle giant named Vaibhav Taneja to replace Zachary Kirkhorn as its finance chief.

The Nasdaq also finished lower for four straight days at the start of May. Before that, the longest losing streak was in October, when it declined six sessions in a row. The S&P 500 also snapped a four-session losing run. It has had two other such stretches in 2023: at the start of May and in late February. It had a five-session skid in December.

Most of the S&P's major indexes rose, led by communication services. Overall, second-quarter earnings have been better than expected so far, with 79.1% of the 422 S&P 500 companies that have reported as of Friday beating analysts' estimates, Refinitiv data shows.

Class B shares of Berkshire Hathaway gained after the Warren Buffett-led conglomerate posted its highest-ever quarterly operating profit. However, Tyson Foods slid after the meat packer disappointed Wall Street expectations for third-quarter revenue. Vaccine makers BioNTech SE and Moderna Inc slumped. The former said it was cutting its drug development budget after quarterly revenue was hurt by a plunge in pandemic-related demand. The latter was hit by investment bank Leerink cutting its price target for the company.

Sage Therapeutics suffered its biggest one-day decline since December 2019, after the U.S. drug regulator declined to approve a first-of-its-kind postpartum depression (PPD) pill. Its partner on the drug, Biogen, recovered to trade higher.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)