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Stock Market Today: Dow falls as rising yields return to put squeeze on stocks

Published 10/12/2023, 04:09 PM
Updated 10/12/2023, 04:09 PM
© Reuters.

Investing.com -- The Dow cut intraday cuts to close lower Thursday as rising Treasury yields pierced through early-day optimism following inflation data that surprised to the upside and signs of ongoing strength in the labor market.  

The Dow Jones Industrial Average fell 0.6%%, 173 points, Nasdaq fell 0.6%, and the S&P 500 slipped 0.6%,

Inflation on the up and up, again; labor market strength continues

The consumer price index is expected to have rose to 0.4% in September, taking the annual rate to 3.7%, slightly above expectations for a 0.3% and 3.6% rise respectively.

The core measure, which excludes food and energy and is more closely watched by the Fed, remained steady at a 0.3%, but the "pace of improvement remains “uncomfortably slow,” Stifel said in a note.

The labor market, meanwhile, continued to surprise to upside as the initial jobless claims were short of the expectations.

“The claims data do not show any real evidence of a pickup in layoff activity,” Jefferies said in a note.

Still, the odds for rate hike next month remain low at 12%, according to Investing.com’s Fed Rate Monitor Tool.

Treasury yields resumed their advance, with the yield on the United States 2-Year Treasury rising above 5%.

Delta Air Lines flies in better-than-expected Q3 earnings, but cuts annual revenue outlook; Walgreens jumps on earnings

Delta Air Lines Inc (NYSE:DAL) reported third-quarter results that topped analysts estimates, but airline cut its full-year revenue outlook, sending its shares more than 2% lower.

For the full year, Delta Air Lines said it expects $6.00 to $6.25 in EPS, down from a prior estimate for EPS of $6 to $7. The company attributed the weaker guidance to a rise in fuel costs.  

Ford reverse after UAW unexpectedly expands strikes; Stellantis in spotlight

Ford Motor Company (NYSE:F) fell 2% as the automaker is set to see further disruptions at its plants after United Auto Workers Union called a surprise strike at Ford’s most profitable plant in Kentucky on Wednesday. 

Stellantis (NYSE:STLA), which was down 2%, will hope to avert further strikes at its plants as it held talks with UAW.

"Here’s to hoping talks at Stellantis today are more productive than Ford (NYSE:F) yesterday," UAW President Shawn Fain said.

Birkenstock continues to fall following disappointing stock market debut

Birkenstock Holding (NYSE:BIRK) fell 6.6%, adding to the 12% slump on Wednesday, when the German sandal maker made an underwhelming public market debut, ending the day below its $46 initial public offering price.

Disney, Comcast get sale process of Hulu underway}}

Walt Disney (NYSE:DIS) and Comcast (NASDAQ:CMCSA) have hired investment banks Morgan Stanley and JPMorgan, respectively, to value streaming site Hulu as the Nov. 1 deadline that will force Disney to buy the remaining 33% stake in Hulu from Comcast.   

In 2019, Disney and Comcast stuck a “put/call” agreement under which either company could trigger a sale or purchase of Comcast's 33% stake in Hulu. The deal also set a guaranteed sale price of $27.5 billion for Comcast's stake.

Latest comments

In a joint status report published by the Washington DC District Court on Friday, the National Archives and Records Administration reluctantly admitted that it knew of 4,243 emails between then-VP Joe and Hunter Biden, another 1,751 messages between Joe and Jim, 19,335 messages between Joe and Hunter’s private equity firm R0sem0nt Seneca, and 3,738 messages between Joe and Jim’s Chinese-communist party connected consulting firm Lion Hall Group.
This is false information. In truth, those emails were not identified as from or to Joe Biden. Search for "Case 1:22-cv-02713-CRC Document 17" to find the original and to see how mendacious Fa altered what it actually says.
Another "late trade" miracle "rally" in the BIGGEST INVESTMENT JOKE IN THE WORLD.  Predictable as the rising tide.  Flagrantly manipulated FRAUD.
hi
Considering interest rates are still rising and will stay high for a long time that will be bad for tech.Anyway the late miracle rally was very fast not seen anything like that before.Someone is manipulating this.Something is not right.
USA has become a joke.I thnk God I don't live there. A country were the leaders hate working people. No wonder the guy with the ginger beard got to no1 in the billboard 100 charts with his  working class song.North of richmond or something like that.
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