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U.S. stocks are mixed after September consumer prices edge higher than expected

Published 10/11/2023, 06:48 PM
Updated 10/12/2023, 11:08 AM
© Reuters.

Investing.com -- U.S. stocks are mixed after consumer prices for September came in slightly higher than expected, following the trend set by producer prices earlier this week.

At 11:06 ET (15:06 GMT), the Dow Jones Industrial Average was down 89 points or 0.3%,  while the S&P 500 was down 0.1% and the NASDAQ Composite was up 0.2%.

Consumer prices edge higher

U.S. consumer prices rose slightly more than expected in September, with the monthly figure rising 0.4%, instead of the expected 0.3%, but this still represented a drop from the prior month's 0.6% rise. On an annual basis, the CPI stayed unchanged at 3.7%.

The widely-watched core number, which strips out volatile items like food and energy, came is as expected at 0.3% on the month, and showed a drop to 4.1% annually from 4.3% the previous month.

While the headline figure was slightly higher than expected, there had been some concern about upside potential given producer prices came in stronger than expected on Wednesday.

Fed minutes point to future caution

The main indices on Wall Street closed higher Wednesday, helped in part by the minutes from the Fed's September meeting, which showed that officials were keen to take a cautious approach to further hikes to interest rates.

The 30-stock Dow ended Monday 65 points, or 0.2%, higher, the benchmark S&P gained 0.4%, while the tech-heavy Nasdaq closed up 0.7%.

Fed policymakers agreed to "proceed carefully" on upcoming interest rate decisions, minutes from their September meeting showed.

Importantly, however, these views were recorded prior to a recent spike in Treasury yields, and Fed officials have since suggested that this increase could be seen as a form of tightening, lessening the need for more rate hikes.

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This view was voiced Wednesday by Fed Governor Christopher Waller, traditionally a rate hawk, who posited that the run-up in yields may have in effect done "some of the work" of tightening financial conditions for policymakers. 

Delta Air Lines reports quarterly earnings 

The new quarterly corporate earnings season begins to kick into gear, Delta Air Lines (NYSE:DAL) is in the spotlight after the carrier reported a jump in profit of almost 60% thanks to a strong summer. 

However, the airline also trimmed its full-year profit outlook, citing higher fuel costs. Delta shares fell 1.2%.

Walgreens Boots Alliance (NASDAQ:WBA) fell short of profit expectations but beat on revenue for the quarter. Shares were up 3.8%. Domino’s Pizza (NYSE:DPZ) beat on profit expectations but fell slightly short on revenue. Shares rose 1.1%.

Crude rises after IEA lifts 2023 demand forecast

Oil prices rose Thursday, helped by the decision of the International Energy Agency to lift its demand forecast for this year to 2.3 million barrels a day from a prior forecast of 2.2 million, even after the sharp rise in prices.

The Paris-based organization did cut its 2024 demand growth to 880,000 barrels per day, compared with its previous forecast of 1 million barrels.

The market had fallen around 2% during the previous session after indications of a hefty rise in U.S. crude stocks last week raised concerns about demand at the largest consumer in the world.

U.S. crude oil stockpiles swelled by just under 13 million barrels, according to data from the industry body American Petroleum Institute, which, if confirmed by the official numbers from the Energy Information Administration later in the session, would be the largest weekly crude stockpile build in eight months.

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(Oliver Gray contributed to this item.)

 

Latest comments

29000 emails show Joe Biden lied about his communication with Hunter and Jim Biden on their businesses.
This is false. Do you know it is false or have you been duped?
Search the Cleveland Nowcast. Look at the quarter over quarter data. 4th quarter PCI and PCE are running almost 1% higher than the 3rd quarter. The market can run, but it can't hide.
hi there 👋
how have you been doing with your investment is It a little tough
NASDAQ is up 5% over the past 5 days, and inflation numbers just came in above prediction with Fed saying rate hikes coming. Good luck!
learn to look at the technicals only while completely shutting out the noise
Two wars, higher than expected inflation, Fed saying more rate hikes, and election coming up...so bullish! I can see why market is up every day this week!
America is like magic.So bullish,
'I have never discussed, with my son or my brother or with anyone else, anything having to do with their businesses. Period.' Now 29,000 emails say otherwise.
You need to find the actual source document before you embarrass yourself further. Those emails were not identified as to or from Joe Biden.
Joe Biden said, 'I have never discussed, with my son or my brother or with anyone else, anything having to do with their businesses. Period.' 29000 emails say otherwise.
if the inflation target is to be changed to 4%, it is a whole new ball game.
I love you, America
As yes, the flagrantly predictable, criminal 11AM breaker fire.  Remarkable how it doesn't trigger during a "rally" and result in a move lower.  Only happens during a loss.  BIGGEST INVESTMENT JOKE IN THE WORLD.
Whadya expect. You're printing money out of thin air.
QT is a joke. The banks get covert QE to stay solvent.
markets can continue to run base formed arnd 4200. its aiming 4750 to 4900 zone in coming months. all dips can be buying opportunity. below 4150 EoW close then alone mkt may turn bearish
Yield curve inversion spreads widening indicating a rate hike is imminent.
They play it as they want, all a major rig job.
3.7% is almost twice the target number. decisive rate hikes are needed. maybe two more aggressive hikes this year.
cut government spending is the cure for inflation.
 And deport all illegal aliens, who come in, get on welfare, and spend on consumer goods / services / food / rent, etc.
thats.... not how it works.
3.7 % @ high int rate is justifiable. core coming at 4.1 % vs 4.3 % shows v gud dip in inflation. plus if crude stays around 85 or below vs 97 last month then next month report can show a lower cpi. usa shld cut fuel price tax if any and this can significantly reduce cpi immediately
german inflation fell drastically this month and indias too from 7 to 5 %. donno why usa alone is sustaining same cpi
because US democrats refuse to cut spending
 Greedflation
not losing is winning.
Love the mkts. Running on optimism for 4 days, then reality hits - missed inflation report on ppi and half of the cpi with sticky inflation and oil prices on the rise - and it basically just shrugs it off. Massive selloff about to hit. Mkt valuations in relation to debt levels is at historic highs, 2000 and 2008 levels.
It wasn’t optimism, it was a bear market rally to 4400. Look at the charts. Topped out at 4600. Dump, then retest to 4500. Another dump, retest to 4400. It’s not hard to make money here. It’s just perma-bulls and people over-leveraging their shorts that go bust. Just follow the trend…
its not a bear mkt rally. if from 3500 to 4600 happened no point calling it bear mkt rally. it was almost near ATH. anyways 4200 base formed and heading to 4750 to 4900 band. below 4150 EoW close alone will confirm bearishes. else all dips r a buy
It's difficult to predict when a bubble will break.
The inflation numbers will be benign by design, and this is not a huge secret. China export/import numbers tonight are less predictable and so can have stronger market impact.
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