Record highs as investors shrug off inflation data

A third straight record high for the Dow and S&P 500 as Thursday's hot inflation reading did little to shake investor confidence in the stock market or the economy.

The Dow inched up 14 points. The S&P 500 crept up 13. The Nasdaq snapped a two-day losing streak with a 51-point gain.

Producer prices continued to surge last month. Wholesale inflation saw its biggest annual jump in more than a decade in July. The report suggests inflation could remain high as demand outstrips supply due to hobbled factory operations. Solid demand for services was also a big factor behind the price spike, which was in contrast to a slower rate of inflation in Wednesday's consumer price data.

In other economic updates, new applications for jobless benefits fell again last week, but the number still remains way above the historical norm.

Art Hogan, chief market strategist at National Securities, sees Thursday's market reaction as a sign investors are comfortable with the idea that the Federal Reserve will soon be scaling down its bond-buying program, also known as - tapering.

"If you combine where the prints that we've seen in inflation, you couple that with what we're seeing in jobs creation, which likely gets even better in the August and September months, that will probably drive the Fed into what is likely consensus that around their September meeting, they will announce the cadence and size of what tapering looks like, and they'll probably put that into action at the end of the year or the beginning of next year."There was a lot of earnings news to digest after the market close."

Disney swung to a quarterly profit compared to a loss the same time last year. A 45 percent jump in revenues blew past forecasts. Disney theme parks returned to a profit for the first time in five quarters and it had 116 million paying subscribers for its Disney+ streaming service.

Revenues at Airbnb tripled last quarter, beating estimates. The home-sharing app warned bookings could slow in the fall due to the health crisis.

Earnings aside, Adidas is selling off Reebok, its American footwear unit, to Authentic Brands Group for up to $2.5 billion. Adidas paid $3.8 billion for Reebok back in 2002.

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