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  • The Dow slips 100 points as inflation comes in hotter than expected

    The Dow slips 100 points as inflation comes in hotter than expected

    The Dow Jones Industrial Average and other major stock market indexes were in the red Thursday morning as a key inflation reading came in higher than expected in September.

    The Consumer Price Index increased by 2.4% in September on an annual basis, according to data released Thursday by the Bureau of Labor Statistics. That was slightly above the 2.3% forecast. Month-over-month, prices rose 0.2% from August, also surpassing the expected 0.1% increase. Core CPI, which excludes volatile food and energy prices, rose 3.3% year-over-year, slightly higher than the expected 3.2%. On a monthly basis, core inflation climbed 0.3%, above projections of a 0.2% rise.

    The data point to ongoing inflationary pressures on the U.S. economy, with attention now shifting to Friday’s release of the Producer Price Index (PPI), which will provide insight into wholesale inflation. Both data points will help inform the Federal Reserve’s next moves, including whether, how much and how fast to cut interest rates in the months ahead.

    The Dow dropped 100 points, or 0.24%, to 42,411 shortly after markets opened Thursday. The tech-heavy Nasdaq and S&P 500 dipped 0.39% and 0.31%, respectively. Oil prices rose on Thursday, with West Texas Intermediate trading at $74 per barrel and Brent crude at $77 per barrel, both up 1.4%.

    Elon Musk’s Tesla robotaxi reveal is finally here

    Tesla (TSLA) CEO Elon Musk will finally unveil the company’s highly anticipated robotaxi on Thursday at Warner Bros. Studios (WBD) in Los Angeles. Dubbed “We, Robot,” the event is expected to provide a first look at a “Cybercab” prototype, along with a booking platform for owners and riders. There will be also an update to the company’s Full Self-Driving (FSD) technology, along with a production timeline.

    Delta and Dominos fall on earnings

    Domino’s Pizza (DPZ) posted its earnings report before the market opened, and its shares were down 2.9%. Delta Air Lines (DAL) stock was also down 2% after the release of its earnings report.

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  • A Parade of Listless Vessels

    A Parade of Listless Vessels

    What are we all doing here?

    The Republicans’ first primary debate dangles on the calendar like one of those leftover paper snowflakes slapped up on the mini-fridge. It feels like a half-hearted vestige—it’s late summer, five months before the first votes are cast; precedent calls for a lineup of haircuts on a stage. And for the most part, the qualifiers will oblige, except for the main haircut—former President Donald Trump, barring some last-minute fit of FOMO that lands him in Milwaukee en route to his surrender to authorities in Georgia.

    So why should the rest of us bother? Would anyone watch a Mike Tyson fight if Iron Mike wasn’t actually fighting? Or The Sopranos, if Tony skipped the show for a therapy session (with Tucker Carlson)?

    Poor Milwaukee, by the way, which already suffered desertion three summers ago when it was selected to host the Democratic National Convention only to have COVID keep everyone home. Joe Biden blew off his own convention and didn’t bother to send an emissary (no Jill, Kamala, or even Doug). Delegates were told to stay away, and the city was left all spiffed up for only a crew of surgical-masked functionaries.

    Tonight’s pageant of also-rans must go on too. The Republican National Committee has decreed this kickoff debate to be a landmark event, sanctifying August 23 as a key date in the 2024 cycle. (“Cycle” feels like an especially apt cliché here—events spinning hypnotically in circles.) Never mind that Trump upended the traditional presidential campaign cycle years ago, and that it is now dictated by whatever whim he decides to follow at a given moment. No matter how much thunder Trump steals from this proceeding—by skipping it, counterprogramming it with Tucker, and potentially following it up with a morning-after mug shot—everyone else is still required to treat this spectacle as some big and pivotal showdown.

    As such, the media will swarm into town—because this is what we do and what we love (and because datelines impress). The host network, Fox News, will hype the clash—the “Melee in Milwaukee,” or some such. One-liners are being buffed, comebacks polished, and umbrage rehearsed. And no matter how effective certain gambits are deemed to be in practice, the absence of the GOP’s inescapable front-runner will only underscore how impotent the rest of the field has made themselves.

    Who knows? A debate stage crowded with eight twitchy egos carries the possibility for surprise. Strange things do happen. That’s why we watch. Trump has given his opponents an opportunity, at least in theory. They can seize this chance to hammer away at the most important issue of the campaign: Trump himself, his radiating legal jeopardy, and the recurring debacle of the GOP nominating him again and again (and probably again). This need not be the televised festival of appeasement that so many expect. And no doubt, there will be a few feisty outliers on the stage. Some of the bottom dogs—Chris Christie, maybe Mike Pence—will probably unleash some unpleasantness in the direction of the truant front-runner. They will have their “moments,” and commentators will praise them for “landing some punches.”

    Even so, tonight’s contest will inevitably suffer from two basic structural flaws. The main point, theoretically, of a political debate is to try to persuade voters to support your campaign instead of the other candidates’. But that presupposes a constituency of voters who can be persuaded by hearing a set of facts, or are open to being educated. This, on the whole, is not the audience we have here. A large and determinative and still deeply committed portion of the GOP electorate—the MAGA sector—has been more or less a closed box for seven years now.

    The rigid devotion that Trump continues to enjoy from much of his party keeps affirming itself in new and dispiriting ways. A CBS News/YouGov poll released over the weekend contained this doozy of a data point: 71 percent of Trump supporters said they are inclined to believe whatever Trump tells them. That compares with 63 percent who are inclined to believe what their friends and family tell them, 56 percent who believe conservative-media figures, and 42 percent who believe religious leaders.

    The other structural defect involves the likely self-neutering of tonight’s putative gladiators. Ideally, a debate features participants who actually want to win. That generally requires a willingness to attack their biggest adversary, whether he’s participating in the event or not, and especially when he holds a massive lead over them. Other than Kamikaze Christie, whom Republicans will almost certainly not nominate, most of the remaining “challengers” on the stage seem content to play for second place—running mate or 2028.

    Florida Governor Ron DeSantis insisted otherwise on Monday, when he claimed on Fox News that he would be the only Republican debater who is “not running to be vice president, I’m not running to be in the Cabinet, and I’m not running to be a contributor on cable news.” This reeked of projection, even though DeSantis would seem especially ill-suited to being a cable personality—even less well suited than he is to running for president.

    DeSantis suffered another indignity last week when The New York Times reported that a firm associated with the super PAC supporting his campaign, Never Back Down, had posted hundreds of pages of internal debate-strategy documents on its website. The game plan, summarized by the Times, called for DeSantis to “take a sledgehammer” to upstart Vivek Ramaswamy while also taking care to defend Trump from Christie’s likely bombardment. In other words, DeSantis would try to score easy goodwill by sidling up to the bully and vivisecting the real enemy, the thirsty biotech guy. So noble of the governor. Maybe Trump will send a thank-you note.

    DeSantis remains, for now, the Republicans’ most legitimate threat to Trump. But if these debate directives are a guide, why is he even bothering? The blueprint appears fully emblematic of everything wrong with his campaign: a bloated venture, playing for continued viability, and zero stomach for taking on Trump in a serious way. It’s also telling that someone decided to post the document trove in such a findable space online—which is either really dumb or really indicative of how badly someone in DeSantis World wants to embarrass him.

    Whether intentionally or not, DeSantis actually coined something memorable the other day when he chided Trump’s supporters for mindlessly following his every pronouncement—“listless vessels,” he called them. (He later said that he was referring to Trump’s endorsers in Congress, not voters.) This struck me as sneaky eloquence from DeSantis, or whoever wrote the line for him. But again, the phrase carried a strong whiff of projection as DeSantis prepared to lead the real parade of listless vessels to Milwaukee, content to bob along in the wake of the Titanic.

    Mark Leibovich

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  • How the Democrats Rallied

    How the Democrats Rallied

    By now you’ve surely heard: Reports of the Democrats’ inevitable defeat this November (might) have been exaggerated. The party infamous for its disarray is suddenly passing legislation left and right (well, center), making a mockery of its effete opposition, and scoring huge abortion-rights victories in Republican strongholds. Inflation may have peaked, and President Joe Biden slayed a terrorist (while sick with COVID). On Capitol Hill, Democrats finally mounted an effective case against former President Donald Trump, who, by the way, had his mansion searched by the FBI for the possible pilfering of nuclear and other highly sensitive secrets.

    The Democrats’ recent hot streak has political prognosticators reassessing the party’s once-brutal outlook for this fall’s midterm elections. Its chances of retaining control of the Senate and swing-state governorships are rising, and although Democrats remain an underdog in the battle for the House, a GOP majority isn’t the sure thing it once was. Republicans have nominated highly flawed candidates in key Senate races (most notably Dr. Mehmet Oz in Pennsylvania and Herschel Walker in Georgia), and Democrats have gained ground in the closely watched generic-ballot polling measure.

    Democrats have plenty of reason for caution. Polls are notoriously unreliable in August, and recent elections have shown that political fortunes can change fast. Biden’s lackluster approval ratings remain a clear drag for the party, and even a slowdown in inflation means prices will remain high for a while. The president’s party historically loses seats in a midterm election even when voters are happy about the economy; the Democrats’ majorities in Congress are tiny to begin with. Yet the party’s prospects are clearly better now than they were back in the spring, thanks in large measure to three main developments.

    The Overturning of Roe

    If Democrats somehow maintain control of the House, or even lose their majority by less than expected, history will look at June 23—the date that the Supreme Court overturned Roe v. Wade. The 5–4 decision authored by Justice Samuel Alito was not a surprise to political junkies, but surveys suggest that it stunned rank-and-file voters who consistently told pollsters that they did not believe the end of Roe was coming. “It’s always been theoretical. People thought, Oh, they won’t go that far. And now it’s here,” Kelly Dietrich, a longtime Democratic operative who founded the National Democratic Training Committee, told me.

    The clearest signal of an electoral backlash came just six weeks later in Kansas, when voters in the solidly Republican state overwhelmingly defeated an amendment that would have allowed the legislature to ban abortion. Democrats, however, have seen indications of higher engagement in several elections in which abortion was not directly on the ballot. In special elections in Nebraska and Minnesota, Democrats lost both House races but kept the gap several points below Trump’s 2020 margin of victory in each district. They performed better in Washington State’s nonpartisan primaries than they did in comparable contests in 2010 and 2014, both GOP “red wave” years. And in Alaska, the party exceeded expectations in a special House election, positioning Democrats to possibly capture a seat that the party has not held in more than 50 years.

    Polls show Democratic enthusiasm for voting in the midterms—a data point in which they had severely lagged behind Republicans—spiking after the decision in Dobbs v. Jackson Women’s Health Organization. Dietrich told me that registrations for candidate trainings have also surged in the past two months, and new Democratic voter registrations have significantly outpaced Republican ones in states where abortion rights are at risk, such as Wisconsin and Michigan, according to data compiled by TargetSmart, a Democratic firm.

    Joe Manchin Gets to Yes

    After more than a year of on-and-off-again negotiations, the Senate’s Hamlet on the Potomac finally agreed to a deal with Senate Majority Leader Chuck Schumer to back legislation lowering prescription-drug prices and making the nation’s largest-ever investment in the fight against climate change. The oddly named Inflation Reduction Act, which doesn’t do much to tame inflation but will reduce the deficit, hands an enormous and long-sought victory to Biden and the Democrats just in time for the fall campaign.

    The law contains only a fraction of Biden’s original transformative vision, but because most Democrats had given up on Manchin entirely, they were ecstatic at his surprise, eleventh-hour decision to support a robust climate, health, and tax package. The elements of the law poll exceedingly well with key constituencies, making it an easy—and timely—issue for Democratic candidates to campaign on this fall.

    Whether the Inflation Reduction Act by itself will boost the party in the polls is hard to say. But its enactment is the latest in a string of legislative achievements for Biden, including the passage of a modest gun-reform bill, the CHIPS Act to support high-tech manufacturing, and the PACT Act to help veterans exposed to toxic burn pits. Along with last year’s $1.9 trillion American Rescue Plan and the $1 trillion infrastructure law, the recent run should erase the image of a do-nothing Congress and a Democratic Party that was seen as squandering its two years in power. “It’s an opportunity—almost a mandate—for Democrats to get out there and brag,” Dietrich said. “Democrats can’t be humble anymore.”

    The January 6 Hearings: This Summer’s Surprising Smash TV Hit

    Many cynics in media had low expectations for the hearings that the House Select Committee on January 6 would hold. But Democrats running the panel hired a former ABC News executive to help produce the events, and the result was a series of newsy and often riveting hearings that drew strong TV ratings and built a compelling case against Trump. The starring role of Vice Chair Liz Cheney of Wyoming lent the hearings a bipartisan sheen and helped obscure the lack of involvement from most other Republicans, and the committee made a smart decision to almost exclusively feature testimony from current and former Trump confidants rather than famous critics of the former president.

    Did the hearings change public opinion? For Democrats, the early evidence is mixed at best, and it’s possible that this month’s FBI search of Trump’s Florida home helped him consolidate support among Republicans all over again. Yet the hearings succeeded in reminding voters of the horror of the attack on the Capitol and what many of them disliked most about Trump. To that end, Democrats believed the hearings helped energize their base about the urgency of the fall elections, potentially protecting against a drop in turnout that would seal their defeat.


    The biggest question about the Democrats’ newfound momentum is how long it will last. Did the Supreme Court’s abortion ruling and the party’s flurry of legislative success in Congress represent a decisive turning point, or merely a brief calm before the crashing of a red wave? Republicans have history and, they believe, political gravity on their side. Biden’s approval ratings have ticked up a few points to an average of 40 percent, but that dismal standing would still ordinarily point to a rout for a president’s party in November. Democrats are left to hope that this is no ordinary year, and if they do come out ahead in the fall, this summer’s comeback will likely prove to be the reason.

    Russell Berman

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