Morning Reads
- China Investors Expect $283 Billion of New Stimulus This Weekend
- Hurricanes and Other Disasters Will Help Shape Our Future Cities
- Amazon Prefers Solar and Wind Energy to Nuclear Power in Asia
- Middle East Conflict Creates a Volatile Moment for Oil Markets
- Big Oil Gives a Reminder of the Market’s Weak Foundations
- Bank of Korea Cuts Rate, Joining Global Wave of Policy Easing
- A Record $6.47 Trillion Is Piling Up in US Money-Market Funds
- Inflation Is Finally Losing Its Power Over Markets
- The Market Has Been Fabulous, Maybe Excessively So
- Wall St. Profits Surge Despite Questions About the Economy
- BlackRock Hits $11.5 Trillion of Assets With Private-Market Push
- JPMorgan Profit Beats Estimates on Investment Banking Strength, Higher Interest Income
- Wells Fargo Profit Beats Forecasts as Provisions Shrink, Shares Rise
- BNY Q3 Profit Rises as Assets Under Custody and Administration top $50 Trillion
- The IPO Slump Is Fine Unless You’re Jamie Dimon
- Boeing Hardens Tone With Union, Laments ‘Bad Faith Bargaining’
- How Uber and Lyft Used a Loophole to Deny NYC Drivers Millions in Pay
- Noel Tata Is New Tata Trusts Head to oversee $165 Billion Group
- Musk Shows Tesla Cybercab, Sees Sub-$30,000 Cost and 2026 Production
- Polestar CEO Says EV Maker Must Start ‘Actively Selling Cars’
- Stellantis Shares Fall as Executive Shake-Up Fails to Calm Nerves
- Nippon Steel to Sell Stake in Calvert JV to ArcelorMittal in Push for U.S. Steel Deal
- Sanofi in Talks to Sell Controlling Stake in Consumer Health Arm to CD&R
- Butter Made From CO2 Is Coming as Startups Chase New Fat Sources
- For Student Athletes in Missouri, Playing at Home Is Lucrative
- Lego Leaps Into Documentaries, With Pharrell Williams as the Subject
PREMIUM
Prepper
Is the disinflation trend stalling? The latest Consumer Price Index reading, which came in hotter than expected, and last week's blowout jobs report have cemented bets that the Federal Reserve will go for a 25-basis-point interest rate cut next month. Some even expect the central bank to pause.
The latest: The headline CPI rose +0.2% in September from the prior month, stronger than the +0.1% expected and flat with August's +0.2%, according to Bureau of Labor Statistics data released on Thursday. Shelter and food contributed the most to the overall increase, while gasoline prices fell substantially. Core CPI, which excludes food and energy, also stalled, rising +0.3% M/M vs. +0.2% expected and +0.3% prior. Separately, weekly jobless claims jumped more than expected, signaling some weakness in the labor market.
SA commentary: "Though it was a slightly disappointing report, to say September inflation marks a resurgence is likely an overstatement," said Seeking Alpha analyst Mike Zaccardi. "Rising food prices remain a sore point, and with prices continuing to increase globally, it's unlikely this trend will reverse course any time soon," said Justin Purohit. But he noted the promising moderation in the shelter category, which has been one of the stickiest categories of inflation over the past several years.
Fed outlook: Atlanta Fed President Raphael Bostic is "definitely open" to holding rates steady next month. "I think we have the ability to wait and let things play out a little longer... There are elements of the [CPI] report which I think validate that view," he said. "Given the strong labor market report, and two consecutive 0.3% core CPI prints, the Fed is likely to pause the easing campaign in November, which is not good news for the stock market," said SA analyst Damir Tokic. (108 comments)
What else is happening...
Banks kick off Q3 earnings season, outlook will take the spotlight.
Tesla (TSLA) unveils Cybercab, robovan and next-gen Optimus.
Advancing AI: AMD (AMD) dips after unveiling new chip, CPU.
Boeing accuses union of bad faith bargaining, misleading public.
Stellantis CEO to retire in 2026, Jeep boss to lead N.A. operations.
Tilray (TLRY) sees better days for cannabis amid U.S. election.
Celsius (CELH), Monster Beverage (MNST) gain after trade show.
Amazon's (AMZN) Prime Big Deal Days event sets new record.
Will Pfizer (PFE) transform in response to Starboard’s activism?
Why is Wall Street powering to new highs despite geopolitical risk?
Today's Markets
In Asia, Japan +0.6%. Hong Kong closed. China -2.6%. India -0.3%.
In Europe, at midday, London -0.2%. Paris +0.1%. Frankfurt +0.1%.
Futures at 6:30, Dow -0.1%. S&P -0.1%. Nasdaq -0.2%. Crude -0.6% to $75.38. Gold +0.6% to $2,654.80. Bitcoin +0.2% to $61,190.
Ten-year Treasury Yield +3 bps to 4.10%.
Today's Economic Calendar
8:30 AM Producer Price Index
9:45 AM Fed’s Goolsbee: "Community Banking: Navigating a Change Landscape"
10:00 AM Consumer Sentiment
10:45 AM Fed's Logan Speech
1:00 PM Baker Hughes Rig Count
1:10 PM Fed's Bowman: "Community Banking: Navigating a Change Landscape"