Dow, S&P 500, Nasdaq slip after hotter-than-expected inflation print - Finapress

US stocks drifted lower on Thursday after probably the most recent consumer inflation print came in hotter than anticipated, establishing expectations for the trail of rates of interest.

The Dow Jones Industrial Average (^DJI) slipped nearly 0.2%, while the S&P 500 (^GSPC) shed roughly 0.3%, after each clinched fresh record highs. The tech-heavy Nasdaq Composite (^IXIC) also edged down 0.5%.

Consumer prices rose 0.2% last month, in line with US government data, greater than the 0.1% rise Wall Street was expecting. On an annualized basis prices rose 2.4%, compared with 2.3% expected. The information was in higher focus than usual as investors puzzle over the probabilities of a “no landing” for the economy after last week’s jobs report revived worries about inflation flaring up again.

Nonetheless the roles market provided a surprise of its own on Thursday, as initial unemployment claims rose to 258,000, way greater than Wall Street anticipated and the best print since June 2023.

Amid all the moving parts, traders now see a 15% probability that the Fed holds rates regular in November, per the CME FedWatch Tool. Just every week ago, the chances of no cut were at 0%, since the market heeded policymakers’ message and prepared for a 25-basis-point reduction.

Also on deck is Tesla’s (TSLA) highly anticipated robotaxi event on Thursday evening. CEO Elon Musk is expected to reveal a two-door, butterfly-wing prototype of the Cybercab he has bet the EV maker’s future on.

Earnings season began to pick up steam before the bell with quarterly results from Domino’s (DPZ) and Delta Air Lines (DAL). The pizza chain beat on earnings but missed on revenue, while the airline’s profit sank over 25% year-on-year inside the wake of a world tech outage. Shares fell barely.

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Thu, October 10, 2024 at 2:30 PM GMT+1

Tech stocks decline after September consumer prices rose greater than expected

The foremost averages opened lower on Thursday after the monthly Consumer Price Index (CPI) came in hotter than expected, setting the expectation that the Federal Reserve will go for a smaller rate cut at its meeting next month.

The Dow Jones Industrial Average futures (^DJI) fell nearly 0.2%, while the S&P 500 (^GSPC) shed roughly 0.3%, slipping fro their fresh record high close. The tech-heavy Nasdaq Composite (^IXIC) also dropped 0.5%.

Technology (XLK) stocks led the declines, followed by Consumer Discretionary (XLY). On the flip side, Energy (XLE) stocks rose as oil jumped Thursday morning.

Investors may be anticipating the Federal Reserve’s next rate of interest cut might be 25 basis points somewhat than 50, after inflation rose by 0.2% in September, greater than the 0.1% rise Wall Street was expecting, in line with probably the most recent government data.
Thu, October 10, 2024 at 1:55 PM GMT+1
Delta stock falls after earnings miss, CEO blames Crowdstrike

Delta Air Lines (DAL) reported third-quarter earnings that missed Wall Street’s expectations Thursday morning, Yahoo Finance’s Brad Smith reports. The miss sent its stock down as much as 7% in premarket trading before paring losses.

Here’s a take a have a look at its performance compared with analyst estimates compiled by Bloomberg.

Adjusted net income: $971 million vs. $981 million expected

Adjusted earnings per share: $1.50 vs. $1.52 expected

Revenue: $14.59 billion vs. $14.68 billion expected

Delta said it forecasts earnings per share of $1.60 to $1.85 for the fourth quarter, with its $0.73 midpoint barely below the $0.78 Wall Street analysts had expected, in line with Bloomberg data.

Delta CEO Ed Bastian blamed disruptions attributable to a widespread CrowdStrike outage in mid-July. Issues with CrowdStrike’s cybersecurity software, utilized by Delta, forced the airline to cancel tons of of flights and wiped $380 million from its revenue for the quarter, he said.

“We had 86 great days and we had five days that were impacted, attributable to CrowdStrike,” Bastian told Yahoo Finance.

Read the whole story here.
Thu, October 10, 2024 at 1:42 PM GMT+1

Jobless claims unexpectedly surge to highest since August 2023

Weekly jobless claims rose greater than expected last week in probably the most recent sign that while the labor market has shown signs of strength, there are still signs of cooling within the roles market.

Recent data from the Department of Labor showed 258,000 initial jobless claims were filed inside the week ending Oct. 5, up from 225,000 the week prior and above the 230,000 economists had expected. This marked the best weekly unemployment claims since June 2023.

Meanwhile, the variety of constant applications for unemployment benefits hit 1.86 million, up by 42,000 from the week prior.
Thu, October 10, 2024 at 1:32 PM GMT+1

Prices rise greater than expected in September

A closely watched report on US inflation showed consumer prices rose greater than expected in September , in line with the latest data from the Bureau of Labor Statistics released Thursday morning.

The Consumer Price Index (CPI) increased 2.4% over the prior 12 months in September, an acceleration compared with August’s 2.5% annual gain in prices and. The yearly increase was higher than the 2.3% economists had expected.

The index rose 0.2% over the previous month, above Wall Street’s expectation for a 0.1% increase.

On a “core” basis, which strips out the more volatile costs of food and gas, prices in September climbed 0.3% over the prior month and a pair of.4% over last 12 months. Core prices rose 0.3% month over month and three.2% on an annual basis in August. Each the monthly and yearly core readings were hotter than economists had projected.