Stocks are mixed so far in today's trading as inflation was higher than expected (see update above). Additionally, WTI crude oil is higher today as it hovers around $84 per barrel at the time of writing. However, the overall downward trend of the raw material from its recent highs has caused prices at the pump to decline compared to last week.
In fact, the national average for regular gasoline was $3.646 per gallon, down from last week's reading of $3.768. The highest prices can be found in California, where prices are substantially higher than the national average, at $5,702 per gallon. On the other hand, Georgia is the state with the lowest gasoline prices, $3.104 per gallon.
Last update: 9:30 am EST
Stocks opened in the green Thursday morning after the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) increased by 0.06%, 0.04%, and 0.01%, respectively, as of 9:30 a.m. EST on October 12.
Important Consumer Price Index (CPI) data released today indicated that inflation rose at a slower pace, 0.4% in September, compared to an increase of 0.6% in August. However, this figure is still higher than economists' forecasts of 0.3%.
In annual terms, inflation remained stable at 3.7%, compared to forecasts for an increase of 3.6%. Core inflation (excluding food and energy prices) rose 0.3% in September for the second consecutive month, in line with estimates.
In annual terms, core inflation decreased from 4.3% to 4.1%, once again meeting expectations. Overall, rising real estate prices accounted for 50% of the increase in inflation, while rising gasoline prices were another major factor. The energy index rose 1.5% in September, while the food index rose 0.2%.
Meanwhile, initial jobless claims for the week ending October 7 came in at 209,000, unchanged from the previous week's level, which was revised upward from 207,000. Jobless claims were slightly below economists' forecasts of 210,000.
Continuing jobless claims totaled 1.7 million, compared to estimates of 1.68 million and previous figures of 1.67 million.
First Posted: 4:19am EST
US futures are rising Thursday morning as traders anticipate important Consumer Price Index (CPI) data due out today. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) increased by 0.24%, 0.20%, and 0.12%, respectively, as of 4:15 a.m. EST on October 12.
Notably, WTI crude oil futures are hovering around $83.71 per barrel at last check. Additionally, the 10-year US Treasury yield is steadily falling, hovering near 4.57% at the time of writing.
Experts predict that headline inflation could have increased by 0.3% in September, down from 0.6% growth in August. Furthermore, on an annualized basis, the CPI is expected to grow by 3.6%. September Producer Price Index (PPI) data released yesterday was higher than expected, at 0.5%. Inflation numbers could guide the path of the Federal Reserve's interest rates at the FOMC meeting at the end of the month.
Meanwhile, traders will also watch the Initial Weekly Jobless Claims Report due out today and listen closely to speeches from several Federal Reserve officials. At the same time, the September quarter earnings season begins today with some notable companies reporting. These include leading airline Delta Air Lines (give it), Walgreens Boots Alliance pharmacy chain (AMB), and pizza giant Domino's Pizza (DPZ).
TO Wall Street Journal The report noted that experts predict that third-quarter earnings will be higher than a year ago and reflect better performances than the second-quarter earnings season. This is despite the high interest rate environment, which some predict has peaked.
Moving on to actions, technology giant Microsoft (MSFT) has opposed the US Internal Revenue Service's (IRS) demand for payment of $28.9 billion in back taxes. The tech giant claims it has followed fair accounting practices and is even willing to challenge the IRS decision in court. Meanwhile, former automaker Ford (F) is in big trouble as the United Auto Workers (UAW) union expanded its strike to the company's truck plant in Kentucky. About 8,700 workers at Ford's largest plant went on strike Wednesday night, when the UAW accused the company of refusing to move forward in contract negotiations.
Elsewhere, European indices are trading in the green today following UK GDP data. The British economy grew 0.2% month on month in August, in line with expectations.
Asia-Pacific markets close higher on Thursday
Asia-Pacific indices ended higher today, following the positivity of their US counterparts. Additionally, markets around the world are awaiting the US inflation release due today. Meanwhile, shares of China's four largest banks got a boost today. China's sovereign wealth fund increased investments in the four banks, representing a movement of confidence in the nation's economic revival.
Hong Kong's Hang Seng Index and China's Shanghai Composite and Shenzhen Component Indices ended with gains of 1.93%, 0.94% and 0.83%, respectively.
Similarly, Japan's Nikkei and Topix indices ended up 1.75% and 1.50%, respectively.
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