Stock market today: Dow, S&P 500, Nasdaq slip after hotter-than-expected inflation print

US stocks drifted lower on Thursday after the latest consumer inflation print came in hotter than anticipated, setting up expectations for the path of interest rates.

The Dow Jones Industrial Average (^DJI) slipped nearly 0.2%, while the S&P 500 (^GSPC) shed roughly 0.3%, after both clinched fresh record highs. The tech-heavy Nasdaq Composite (^IXIC) also edged down 0.4%.

Consumer prices rose 0.2% last month, according to US government data, more than the 0.1% rise Wall Street was expecting. On an annualized basis prices rose 2.4%, compared with 2.3% expected. The data was in higher focus than usual as investors puzzle over the chances of a “no landing” for the economy after last week’s jobs report revived worries about inflation flaring up again.

But the jobs market provided a surprise of its own on Thursday, as initial unemployment claims rose to 258,000, much more than Wall Street anticipated and the highest print since June 2023.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

Amid all the moving parts, traders now see a 15% chance that the Fed holds rates steady in November, per the CME FedWatch Tool. Just a week ago, the odds of no cut were at 0%, as the market heeded policymakers’ message and prepared for a 25-basis-point reduction.

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

Earnings season started to pick up steam 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 sank over 25% year-on-year in the wake of a global tech outage. Shares fell slightly.

Live6 updates

Thu, October 10, 2024 at 4:41 PM GMT+2

Housing inflation eased in September in ‘sharp reversal’ from previous month

Yahoo Finance‘s Hamza Shaban reports:

September’s Consumer Price Index (CPI) report came in hotter than analysts expected, but the data offered one major point of optimism: shelter cost increases came down during the month, flashing an encouraging economic signal that the most stubborn contributor to inflation may finally be giving ground.

“The sharp reversal in shelter inflation allays fears that it could reaccelerate after the jump in August and brings the trend back toward the gradual disinflation that we continue to expect,” said Parker Ross, global chief economist at Arch Capital Group

Read more here.
Thu, October 10, 2024 at 4:16 PM GMT+2

Gas prices and energy index plummet, but not enough to offset hot CPI

Falling gasoline prices were not enough to offset higher food and shelter prices in September, contributing to a hotter-than-expected inflation print.

The gasoline index decreased 4.1% last month, compared to a decline of 0.6% in the prior month, according to Bureau of Labor Statistics data released Thursday.

On an annualized basis, gasoline prices dropped 15.3%, while the energy index as a whole decreased 6.8%.

Read more here.
Thu, October 10, 2024 at 3:30 PM GMT+2

Tech stocks decline after September consumer prices rose more than expected

The major averages opened lower on Thursday after the monthly Consumer Price Index (CPI) came in hotter than expected, setting the expectation that the Federal Reserve will opt for a smaller rate cut at its meeting next month.

The Dow Jones Industrial Average futures (^DJI) fell nearly 0.2%, while the S&P 500 (^GSPC) shed roughly 0.3%, slipping fro their fresh record high close. The tech-heavy Nasdaq Composite (^IXIC) also dropped 0.5%.

Technology (XLK) stocks led the declines, followed by Consumer Discretionary (XLY). On the flip side, Energy (XLE) stocks rose as oil jumped Thursday morning.

Investors may be anticipating the Federal Reserve’s next interest rate cut will be 25 basis points rather than 50, after inflation rose by 0.2% in September, more than the 0.1% rise Wall Street was expecting, according to the latest government data.
Thu, October 10, 2024 at 2:55 PM GMT+2
Delta stock falls after earnings miss, CEO blames Crowdstrike

Delta Air Lines (DAL) reported third-quarter earnings that missed Wall Street’s expectations Thursday morning, Yahoo Finance’s Brad Smith reports. The miss sent its stock down as much as 7% in premarket 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 expected

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

Revenue: $14.59 billion vs. $14.68 billion expected

Delta said it forecasts earnings per share of $1.60 to $1.85 for the fourth quarter, with its $0.73 midpoint slightly below the $0.78 Wall Street analysts had expected, according to Bloomberg data.

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

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

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

Jobless claims unexpectedly surge to highest since August 2023

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

New data from the Department of Labor showed 258,000 initial jobless claims were filed in the week ending Oct. 5, up from 225,000 the week prior and above the 230,000 economists had expected. This marked the highest weekly unemployment claims since August 2023.

Meanwhile, the number of continuing applications for unemployment benefits hit 1.86 million, up by 42,000 from the week prior.
Thu, October 10, 2024 at 2:32 PM GMT+2

Prices rise more than expected in September

A closely watched report on US inflation showed 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) increased 2.4% over the prior year in September, an acceleration compared to August’s 2.5% annual gain in prices and. The yearly increase was higher than the 2.3% economists had expected.

The index rose 0.2% over the previous month, above Wall Street’s expectation for a 0.1% increase.

On a “core” basis, which strips out the more volatile costs of food and gas, prices in September climbed 0.3% over the prior month and 2.4% over last year. Core prices rose 0.3% month over month and 3.2% on an annual basis in August. Both the monthly and yearly core readings were hotter than economists had projected.