In a significant boost to the stock market on this Friday morning, the Dow Jones Industrial Average gained momentum following the latest reading of the Federal Reserve's favored inflation measure.

Trading News: Key Stocks in Focus

In trading news, several companies grabbed attention on the Yahoo Finance trending tickers page.

Costco (COST) experienced a drop of over 1% after delivering a mixed fourth-quarter earnings report. The retail giant’s revenue for the quarter hit $79.70 billion, slightly shy of the anticipated $79.96 billion, though US comparable sales (excluding gasoline and currency impacts) outperformed analysts' expectations.

Cassava Sciences (SAVA) stocks plummeted more than 10% as the company reached a settlement with the US SEC. The settlement, which addresses allegations of misleading claims related to an Alzheimer's clinical trial, will cost the company over $40 million.

Bristol Myers Squibb (BMY) saw a 3% increase in its share value after the FDA granted approval for its innovative schizophrenia drug—the first new therapeutic approach for the condition in three decades.

Acadia (ACHC) shares shed approximately 18% following a settlement with the Justice Department over claims of billing patients for unnecessary inpatient behavioral health services. The company will pay nearly $20 million in this resolution.

The day's trading mood was further lifted by the latest data from the Personal Consumption Expenditures (PCE) index, which indicated that inflation in August rose at a slower pace than analysts had forecasted.

This news has shifted market expectations regarding the Federal Reserve's monetary policy, particularly the possibility of an upcoming 50-basis-point interest rate cut. Currently, investors are estimating a 54% chance of such a move during the November policy meeting, reflecting a notable increase from the 50% likelihood predicted a week earlier.

Should inflation continue to display signs of moderation, Federal Reserve officials may feel pressured to expedite their plans for decreasing interest rates. High rates pose a risk to the labor market and could inadvertently trigger an economic slowdown—a scenario the Fed has so far managed to circumvent.

Costco's Performance in the Gold Market

In other spotlight news, Costco is reportedly crushing it in the gold market. This quarter saw a “double-digit” increase in gold sales, with CFO Gary Millerchip noting that gold sales have provided a meaningful boost to e-commerce figures.

Since launching gold bar sales in the fall of 2023, Costco has moved between $100 million to $200 million worth of gold monthly, with the current price for a 1 oz gold bar standing at $2,679.99 for members only.

While gold sales might be thriving, Costco's core business remains strong. The fiscal fourth quarter revealed a 6.9% growth in same-store sales, exceeding Wall Street’s prediction of 6.4%. E-commerce sales leaped 19.5%, though this was slightly short of analysts' projected growth of 19.63%.

Intel's Market Movement

In tech news, Intel (INTC) stocks rose by 1.8% early Friday as the Financial Times reported the company is likely to finalize $8.5 billion in funding under the CHIPS Act by year-end.

Meanwhile, Bloomberg disclosed that Arm Holdings is interested in acquiring Intel's product business, although the potential offer has been rejected.

Furthermore, Intel has attracted interest from Qualcomm (QCOM) and Apollo, with discussions around a complete acquisition also swirling. Despite recent stock gains, Intel shares have decreased over 50% since the start of the year, underscoring ongoing volatility in the semiconductor sector.

PCE Data Insights

The latest PCE data revealed that while prices on a month-over-month basis increased by just 0.1% in August—below the anticipated 0.2%—the year-over-year rise matched expectations at 2.7%, slightly exceeding the prior month’s 2.6% rate.

As we move further into the trading day, investors are keenly watching these developments and their implications for the broader market.

Stay vigilant on market trends—who knows what opportunities may arise next?