Hawkish Powell Remarks Accelerate Losses After PPI
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Welcome to the swamp market update podcast, where each trading day we recap tea market results and statistics. I'm key lands' erd, and here's a summary of what happened today, thursday, november four. Teens cautious words from federal reserve chairman drone power helped to extend earlier data related losses on wall street.

The doctor treated for the third time in four sessions. Major indexes remain near all time highs, but some momentum from last week exposed election rally has faded. Power speaking in dallas after two inflation reports this week showed little progress and said, there is no need to rush rate cuts.

The economy is not sending any signals that we need to be in a hurry to lower rates, power said in a prepared version of his reMarks. The trying we are currently seeing in the economy gives us the ability to approach our decisions carefully. Yet IT inflation is running much closer to our two percent longer run goal, but it's not there yet.

We are committed to finishing the job chances of a december rate trim, which top eighty percent early this week in future trading quickly descended to just above sixty percent after power spoke, there has been above Normal volatility in fed funds trading recently, a sign of uncertainty about the fed's next move. The october producer Price index, or ppi, out this morning rose zero point two percent monthly for the headline ppi and zero point three percent for core, which excludes a volleyball. Food and energy both met consensus, but annual core ppi of three point one percent slightly exceeded expectations for three percent, even as annual headline ppi rose the expected to point three percent.

This followed yesterday's october consumer Price index, or CPI, that met consensus but didn't show improvement. Inflation is proving to be stickier than expected, said Cooper Howard, director of fixed income strategy at the swap centre for final research. Although we expect the softening labor market dease of some inflationary concerns, proposed policies from the incoming administration seem likely to pull inflation up.

Treasury heels jumped after ppi hitting new four months highs for the benchmark ten year treasury note at nearly four and half percent, but buyers showed up relatively soon and yields gave back early gains. Ten of eleven S M, P sectors fell today. Here's where the major benchMarks ended. A S M P five hundred index fell thirty six point two one point, or zero point six percent, to five thousand nine forty nine point one seven, but out jone's a dust rial average is lost two hundred and seven point three three points, or zero point four seven percent, to forty three thousand seven seven point eight six.

And then has that composition dropped one hundred and twenty three point zero seven points, or zero point six four percent, to one thousand one hundred and seven point six five? A ten year treasury no yield fell three basis points to four point four two percent, and the cabo volatility index, or vicks, edged up to fourteen point one. As far as talks on the move, the consumer directionally sector, which consists of about forty percent tesla and amazon, charged ahead after the election but lost its grip today as those two stocks retreated.

Financials, another recent sector leader on ideas, the new us administration might ease regulations and ignite interest emerges, and acquisitions also couldn't keep pace that many sectors could. Only energy gained while health care consider discretionary and industrials lost more than one percent. Small cap switch, a sensitive rising rates, suffered most jd 点 com， fell more than six percent despite the chinese retailer beating earnings expectations.

However, revenue growth of just more than five percent and the recent government stimulus didn't seem to dissipate worries about the chinese consumer. However, consumer sentiment brightened during the quarter, the company said competitor alibaba reports early tomorrow. A S, M, L advanced almost five and a half percent after the dutch semiconductor equipment maker confirmed its twenty thirty targets.

Shares descended last month following disappointing games for twenty twenty five based in parts on a week market in china, A S M halse's global semiconductor sales rising to more than one trillion dollars by twenty thirty when resorts plan nearly nine percent after a regulatory filing showed a well known billionaire investor took a major stake in the company shares and the tesla v all nearly six percent and other EV stocks also declined on reports that president elected Donald eliminate the seven thousand five hundred dollar consumer tax credit for E V purchases bomberg reported earlier today, running from what disney lifted shares to double digit games. Streaming profitability remain the big story, with a direct to consumer streaming business posting an Operating profit of three hundred and twenty one million dollars, sharp improvement from losses of three hundred and eighty seven million dollars a year ago. The entertainment giant also provided gains for fiscal twenty twenty five earnings for share that surpassed at least average state during the company's fiscal forth court to the box office business surge.

But Operating income at the experiences segment fell six percent from a year ago, heard by declines in the company's international theme parks, apply materials and important supplier to the micon ductor induction reports this afternoon after beating analysts as to its last time out, AI demand metrics could get a close look 而 为 tomorrow retail sales for october bring this week's data binge to a close。 Lower energy Prices likely played into the september sales gains, possibly allowing consumers to spend more on other items. Says they spent filling their tanks and heating and cooling their homes.

Deadline retail sales are seen up to zero point three percent months of a month according to trading economics, down from zero point four percent in september. Some analysts pay more attention to retail sales, excluding autos, which rose zero point five percent last time they were even stronger, excluding gasoline, at zero point seven percent. Politics continue to have an impact on stocks.

After republicans claimed there two hundred and eighteen th seed in the U. S. House of representatives late yesterday, enough to keep control of the chAmber, the final margin is undetermined. It's looking like IT will be very narrow, likely between three and five seats, said Michael townson, managing director of later and regulatory affairs.

Echo b unified government gives a republicans the opportunity to pass a bold agenda that includes turfs, a huge tax bill, dramatic changes to immigration policy, a major deregulation effort and much more. But the margins in congress, particularly in the house, are going to be really thin, and that could pose problems if even a few lawmakers push back on solve these issues. Today's inflation reading the mpower reMarks took place in a climate where many investors are looking ahead to next year's fiscal policy and its possible inflation impact.

Powel declined to discuss what the impact of the next administration policies might be taking a closer look at P, P, I services sector. Prices continue to grow faster than investors want to see, rising zero point three percent in october versus zero point two percent in september. For ppi, goods Prices rose just zero point one percent.

On the whole sale front, although headline ppi of zero point two percent was expected, IT represented an increase from zero point one percent growth in september, the three point one percent annual core gain compared with two point eight percent in september. But annual readings face tough comparisons to a year ago when inflation growth was slowing dramatically. On a year over year basis, a core ppi has been steadily rising since the end of last year, said Colin Martin, director of fixed income strategy at the swap center for financial research.

The fed has one eye on Prices, but the other on labor. After october, job growth slowed to a crawl. That report, however, reflected storms and labor strikes didn't send a clear signal, power said.

Today, the labor market remains in solid condition and is no longer overheated. Power added IT is no longer a source of significant inflationary pressures. With labor market conditions in rough baLance sand inflation expectations well anchored, I expect inflation to continue to come down toward our two percent objective, albeit on a sometimes bumpy path.

Weekly U. S. Initial jobless claims were slightly below consensus at two hundred and seventeen thousand, down from two hundred and twenty one thousand last week. Continuing claims of one point eight seven three million remained high, but also were below consensus and down slightly from a week ago, still continuing claims state above one point eight million for the twenty three week and arrow, an elevated level that suggests it's difficult for later off workers to quickly find a new employment. Early wage growth remained solid, which could help explain recent resilience among consumers.

Inflation adjusted average early earnings grew by one point four percent euro year in october, near the upper end of the rage in the expansion that lasted from post great financial crisis to prepare demichelis Kevin gordon, director and senior investment strategist ash wom, as of late today, traders see sixty two percent chances. Rates will fall twenty five basis points at the conclusion of the federal open market committee meeting december seventh and eighteen and a thirty eight percent chance of no move based on the cmi fed watch tool. This has been the swap market update podcast.

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