The Dow Jones Industrial Average edged higher Thursday, helped by a post-earnings Disney rally and a key inflation reading showing slightly less year-over-year inflation growth than expected.
The blue-chip average added 52.79 points, or 0.15%, to finish at 35,176.15. The S&P 500 inched up 0.03% to 4,468.83. The Nasdaq Composite rose 0.12% to close at 13,737.99.
All three indexes climbed more than 1% earlier in the session, with the Dow up more than 450 points. Despite Thursday's gains, the Nasdaq Composite and S&P 500 are on pace to end the week lower by 1.2% and 0.2%, respectively. The Dow is slated for a 0.3% advance.
July consumer prices gained 3.2% on an annual basis, less than the 3.3% consensus from economists polled by Dow Jones. On a month-to-month basis, inflation increased 0.2%, in-line with estimates. The report also said real average weekly earnings were unchanged last month in another positive sign.
Still, the report had some indications of sticky inflation. Excluding food and energy, the so-called core July CPI reading was up 4.7% on an annual basis, far above the Fed's 2% target. And headline inflation was above the 3% annual rate in June.
"Overall, this builds on the market's expectations around a potential soft landing," said Michelle Cluver, portfolio strategist at Global X. "This was an encouraging inflation print for markets and Fed expectations."
Meanwhile, Disney gained 4.9% and was the best performer in the Dow after announcing an upcoming price hike for ad-free Disney+ subscriptions. Late Wednesday, the media giant also reported fiscal third-quarter earnings per share that beat expectations. Wynn Resorts advanced 2.6% on a better-than-expected report.
More than 90% of S&P 500 companies have reported earnings for the quarter as of Thursday morning. Of those, about four-fifths have beat Wall Street expectations, according to FactSet.
Correction: An earlier version of this story misspelled the name of Michelle Cluver.
Dow ends Thursday slightly higher, lifted by weaker-than-expected inflation data, Disney pops nearly 5%: Live updates - CNBC
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