Stocks Flatline on Tame CPI Ahead of Disney, PPI
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Welcome to the show market update podcast, where each trading day we recap key market results and statistics. I'm collado clear and here's a summary of what happened today, wednesday, november thirteen th letter g stopped while street after october s consumer Price index or CPI failed to pack much drama. Major indexes hovered near the flat line most of the session and the tech heavy mazda composition retreated.

But treasury yield ds had a more exciting day, shorter term treasury yields, more sensitive to near term federal reserve right policy and lower after CPI data met expectations and odds of a december rate cut row sharply in futures trading. But longer term yells, including on the benchmark ten year treasury note, marched back from early weakness to trade near recent form month highs on concerns about inflation killed by economic growth and possible us physical policy changes. CPI showed little progress on inflation, but no unpleasant surprises either.

Headline CPI row zero point two percent and core CPI, which excludes volatile food and energy Prices, climb zero point three percent, both meeting analysts expectations. Year over year CPI rose two point six percent, also in line with wall streets forecasts, but up from two point four percent in september as housing Prices stayed firm. Core annual CPI rose three point three percent, steady with september.

These remain well above the federal reserve target of two percent. Consumer directionally stocks shine today approaching prime retailer earnings season. Stocks like query, amazon and hometowns advanced and home builders also firmed after struggling tuesday.

Consumer directionally lifted by tesla like post election gains, easily leads all sectors over the last week, lifted by hopes for resilient holiday spending in an economy that seems to be firing on most, if not all, cylinders. Real average hourly and weekly earnings continue to rise, which should support consumer spending, said cap Jones c. Fixed incomes.

Strategists at wab tomorrow features octobers producer Price index, or P, P, I report before the opening bell, along with earnings from wall disney and deployed materials. Volatility continue to languish after the election build up, falling to four months lows and indicating less chances of major market moves in the near term. Futures trading at the sea boo, however, shows volatility rising in the new year.

Here's where the major benchMarks ended. The S N P of five hundred and x or the S P X rose one point three nine points, or zero point zero two percent, to five thousand nine hundred eighty five point three eight. The deal jone's industrial average added forty seven point to one point, or zero point one one percent to forty three thousand nine hundred fifty eight point one nine, and the nazi composites fell fifty point six six points, or zero point to six percent, to nineteen thousand two hundred thirty points seven four.

The ten year treasury y no yield added two basis points to four point four five percent, just below last weeks four month high. The sea of volatility index of the vics slid to fourteen points, zero, three, down sharply from above twenty early last week. As for stocks on the move today, the following companies had stock Price moves driven by analyst ratings, quarterly earnings or other news.

Cava group inched up one point five seven percent after the restaurant firm easily beat wall streets earnings estimates in a quarter marked by robust same store sales growth, which measures growth. Its stores open a year or longer revenue rose thirty nine percent year over year, and same store sales grew eighteen point one percent. Spotify climbed more than eleven percent despite its earnings per share, or E, P, S, missing average analyst estimates.

The audio streaming platform helped to make up for that with what analysts called strong forth quarter guidance for subscriber and user growth, and several analysts raised their Price targets. On the stock revision. Shares accelerated thirteen point seven one percent as the evy maker said the size of its joint venture with falt wagon has climbed to five point eight billion dollars from the original five billion dollars.

C, N, B, C reported Operations launched today. Spirit airlines plunged more than fifty nine percent after the wall street journal reported the discount airline is preparing to file for bankrupcy protection. The philadelphia semon ductor index slipped again today, falling two percent in its fourth construct of loss.

It's now only slightly above where it's settled the day before the election, despite the broader market being up five percent since then. Worries about possible trade tensions with china Spike after a reuters report that stated the U. S.

Government recently ordered taiwan semiconductor manufacturing, or t. Sm, to halt shipments of AI chips to china. There's also caution ahead of nvidia's earnings next week.

Endless wonder if you can forecast guidance, then presses well street. Cisco dropped about one percent in post market trading despite earnings, revenue and fiscal second quarter guidance, all beating wall street estimates. Guidance for physical twenty twenty five revenue came in near the middle of expectations.

The company has wide exposure across the tech sector, making IT a good parameter, but it's struggle to grow revenue recently. That continued in fiscal first quarter as revenue from the key networking business fell twenty three percent year over year. Disney earnings tomorrow follow its previous quarter when streaming profited for the first time ahead of vanilla expectations.

However, parks and experiences could come under scrutiny after a soft fiscal third quarter in what one executive called a slight moderation in demand. Another question is whether streaming can make IT two profitable quarters in a row, and investors also have their collective eye on any possible news of CEO succession plans. Applied materials, an important supplier to the semiconductor industry, reports tomorrow afternoon after beating analyst estimates last time out.

Shares have languaged for months. However, along with most of the chip sector. With C, P, I in the books, investors await tomorrow's P, P, I and friday's retail sales. Initial weekly jobless claims are the third leg of the data trifecta ing wall street between now in the weekend. Here are analysts estimates for thursday's P, P, I report.

According to trading economics, october monthly ppi zero point two percent for s zero percent in september, october monthly core P, P I, zero point three percent versus zero point two percent in september, october annual P, P I two point three percent versus one point eight percent in september, and october annual core P P I percent versus two point eight percent in september. Keep in mind, with all inflation data ahead, that annual readings have tough comparisons due to fast thinking inflation this time a year ago. As vega man power said last week, it's important not to simply look at the twelve month picture, but the three to six month trend as well, which is where the fed continues to see improvement.

Power speaks tomorrow on the economic outlook, but it's unclear if he'll make any reMarks about CPI and P, P. I. Last week, he declined to discuss the next administration's fiscal policy, which the fed doesn't control the next administration planned for across the board.

Terf on imports are a concern for wall street because they pose potential downside risk to economic and earnings growth, while also possibly increasing inflation. Tera fires could be one reason. Semiconductors and some mega caps like apple and microsoft with large overseas businesses haven't enjoyed the full fruits of the post election rally.

The U. S. Dollar trades near multiple hires, which can hurt make a caps that have large sales abroad. Speaking of abroad, most european in asian stock indexes ended flat to lower today. Japanese producer Prices rose more than expected, shifting focus toward the bank of japan as IT gears for its next meeting in mid december.

Analysts are uncertain about the B, O, J or the bank of japan's path on rates after a couple of hikes earlier this year, but recent Young weakness and rising inflation could pressure policymakers to at least consider another increase the last time the B, O, G hiked in july IT LED to a Spike in the end, that weight on U. S, stocks diving further into october. C, P, I.

Prices for food, shelter, used cars and trucks, airline fares, medical care and recreation all rows, but a perl, communication and household furnishings fell. The rise in shelter Prices accounted for roughly half the monthly headline CPI increase, with supply still an issue, though today's reports soothe investors where the inflation might come in even higher than expected. It's just one data point and didn't show progress toward the feds two percent goal in the overall headline annual reading.

The concern is that some of the move down to two percent has stalled out and inflation is stickier than expected, said Cooper Howard, director, fixed in incomes strategy at the swab center for a financial research. Another issue some took with C. P, I is that the three months rate of change has picked up relative to the six months.

The momentum is in the wrong direction, swabs, Jones said. As of late today, trader see eighty two percent chances rates will fall twenty five basis points at the conclusion of the federal open market committee meeting december seventeen to eighteen and an eighteen percent chance of no move based on the C. M, I, that watch tool.

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