Dow, S&P 500, Nasdaq slip after hotter-than-expected inflation print

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Dow, S&P 500, Nasdaq slip after hotter-than-expected inflation print

US stocks fell on Thursday after the latest consumer inflation print came in higher than expected, raising expectations for the path of interest rates.

The Dow Jones Industrial Average (^DJI) fell nearly 0.2 percent, while the S&P 500 (^GSPC) fell about 0.3 percent after both hit new highs. The tech-rich Nasdaq Composite ( ^IXIC ) also fell 0.5 percent.

Consumer prices rose 0.2 percent last month, according to U.S. government data, more than the 0.1 percent increase Wall Street had expected. Prices on an annual basis rose 2.4%, compared to the 2.3% expected. The data came into sharper focus than usual as investors grappled with the chances of a “no-landing” economy after last week’s jobs report reignited inflation concerns again .

But the labor market delivered a surprise of its own on Thursday as initial jobless claims rose to 258,000, far more than Wall Street had anticipated and the biggest print since June 2023.

Read more: What Fed rate cuts mean for bank accounts, CDs, loans and credit cards

Amid all the moving parts, traders now see a 15 percent chance the Fed will hold rates steady in November, according to CME’s FedWatch tool. Just a week ago, the odds of no cut were 0% as the market heeded the message from policymakers and braced for a 25 basis point cut.

Also on deck is Tesla’s ( TSLA ) highly anticipated robotaxi event on Thursday night. CEO Elon Musk is expected to unveil a two-door, butterfly-wing prototype of the Cybercab he has staked on the electric vehicle maker’s future.

Earnings season started to heat up before the bell with quarterly results from Domino’s ( DPZ ) and Delta Air Lines ( DAL ). The pizza chain beat on earnings but missed on revenue, while the airline’s profit fell more than 25 percent year-on-year following a worldwide technology outage. Shares fell slightly.

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Thursday 10 October 2024 at 15:30 GMT+2

Tech stocks fall after September consumer prices rose more than expected

The major averages opened lower on Thursday after the monthly consumer price index (CPI) came in higher than expected, raising expectations that the Federal Reserve will opt for a smaller interest rate cut at its meeting next month.

Dow Jones Industrial Average (^DJI) futures fell nearly 0.2%, while the S&P 500 (^GSPC) fell about 0.3%, falling from a recent record close. The Nasdaq Composite ( ^IXIC ) also fell 0.5 percent.

Technology stocks ( XLK ) led decliners, followed by Consumer Discretionary ( XLY ). On the other hand, Energy shares ( XLE ) rose as oil rose on Thursday morning.

Investors may expect the Federal Reserve’s next rate cut to be 25 basis points instead of 50 after inflation rose 0.2% in September, more than the 0.1% increase at Wall Street expected, according to the latest government data.
Thursday, October 10, 2024 at 14:55 GMT+2
Delta shares fall after earnings miss, CEO blames Crowdstrike

Delta Air Lines ( DAL ) reported third-quarter earnings Thursday morning that missed Wall Street expectations, Yahoo Finance’s Brad Smith reports. Miss sent its shares down as much as 7% in pre-market trading before paring losses.

Here’s a look at its performance compared to analyst estimates compiled by Bloomberg.

Adjusted net income: $971 million vs. $981 million estimated

Adjusted earnings per share: $1.50 vs. $1.52 estimated

Revenue: $14.59 billion vs. $14.68 billion estimated

Delta said it forecast fourth-quarter earnings per share of $1.60 to $1.85, with a midpoint of $0.73 slightly below the $0.78 level that Wall Street analysts were expecting. were waiting, according to Bloomberg data.

Delta CEO Ed Bastian blamed the disruptions on a large-scale CrowdStrike outage in mid-July. Problems with CrowdStrike’s cybersecurity software used by Delta forced the airline to cancel thousands of flights and wiped $380 million off its revenue for the quarter, he said.

“We had 86 great days, and we had five days that were affected, caused by CrowdStrike,” Bastian told Yahoo Finance.

Read the full story here.
Thursday, October 10, 2024 at 14:42 GMT+2

Jobless claims unexpectedly rose to the highest level since August 2023

Weekly jobless claims rose more than expected last week, the latest sign that while the labor market has shown signs of strength, there are still signs of cooling in the labor market.

New data from the Labor Department showed 258,000 initial jobless claims were filed in the week ended Oct. 5, up from 225,000 the previous week and above the 230,000 economists expected. This marked the highest weekly jobless claims since June 2023.

Meanwhile, the number of continuing jobless claims reached 1.86 million, up 42,000 from the previous week.
Thursday, October 10, 2024 at 14:32 GMT+2

Prices rise more than expected in September

A closely watched U.S. inflation report showed that consumer prices rose more than expected in September, according to the latest data from the Bureau of Labor Statistics released Thursday morning.

The consumer price index (CPI) rose 2.4 percent from a year earlier in September, an acceleration from August’s 2.5 percent annual rise in prices and. Annual growth was higher than economists had expected of 2.3 percent.

The index rose 0.2 percent from the previous month, beating Wall Street expectations for a 0.1 percent increase.

On a “core” basis, which strips out more volatile food and gas costs, prices in September rose 0.3 percent from the previous month and 2.4 percent from a year ago. Core prices rose 0.3% month-on-month and 3.2% year-on-year in August. Both the monthly and annual core readings were hotter than economists had projected.