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Tag: Producer price index

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

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

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    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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  • Futures lackluster with inflation data, Fed Chair Powell speech on tap

    Futures lackluster with inflation data, Fed Chair Powell speech on tap

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    (Reuters) – U.S. stock index futures were little changed on Tuesday as investors waited for producer prices data for cues on inflation in the world’s largest economy and ahead of Federal Reserve Chair Jerome Powell speech later in the day.

    Producer price index (PPI) for final demand is expected to have edged up 0.3% last month, according to economists polled by Reuters, after increasing by an unrevised 0.2% in March.

    The PPI is expected to increase by 2.2% in the 12 months through April, after adding 2.1% in the prior month.

    Sticky inflation and persistent labor market strength have prompted financial markets and most economists to push back expectations for an initial Fed interest rate cut.

    Traders now see a 49.6% chance that the central bank will ease rates by 25 basis points in September, according to the CME FedWatch Tool, from 44% last month. That compared with expectations for first rate cut as early as March at the start of the year.

    Still, stocks have rallied so far this year, with all three major U.S. indexes hovering near fresh record highs, underpinned by better-than-expected first-quarter earnings and hopes that the Fed will cut rates some time this year.

    Focus will be more on Wednesday’s consumer price figures to help assess whether the upside surprises in the first quarter were a blip or a worrying trend.

    Meanwhile, Fed Chair Jerome Powell is due to speak at 1400 GMT.

    At 05:00 a.m. ET, Dow e-minis were up 11 points, or 0.03%, S&P 500 e-minis were up 1 points, or 0.02%, and Nasdaq 100 e-minis were up 7.75 points, or 0.04%.

    The U.S.-listed shares of Alibaba added 0.7% in premarket trading ahead of results.

    Meanwhile, U.S. President Joe Biden unveiled a bundle of steep tariff increases on an array of Chinese imports including electric vehicles, computer chips and medical products.

    U.S.-listed shares of Chinese EV makers Li Auto and Xpeng slid more than 2% each.

    GameStop jumped 39.2%, set to extend its rally after flag bearer Roaring Kitty posted on X.com for the first time in three years.

    Other 2021 meme rally participants and highly shorted stocks such as AMC Entertainment and Koss Corp rose 38.2% and 12.6%, respectively.

    (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Sriraj Kalluvila)

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