Stocks close lower with US Sep CPI higher than expected

From Nasdaq: 2024-10-11 12:14:53

Stocks posted moderate losses on Thursday after US Sep consumer prices rose more than expected. The S&P 500 closed down -0.21%, the Dow Jones down -0.14%, and the Nasdaq down -0.13%. Weekly jobless claims also rose to a 14-month high. Energy stocks limited losses. The market is awaiting Q3 earnings season to begin Friday.

US Sep CPI eased to +2.4% y/y, while Sep CPI ex-food and energy unexpectedly strengthened to +3.3% y/y. Weekly initial jobless claims increased by +33,000 to 258,000. Middle East tensions remain a concern for the market.

European government bond yields were mixed. German Aug retail sales rose 1.6% m/m. Swaps are pricing in a -25 bp rate cut by the ECB at the Oct 17 meeting.

Chip stocks weighed on the market. Advanced Micro Devices led losers closing down -4%. Generac Holdings dropped after hurricane Milton weakened. Pfizer and PayPal closed down after downgrades. Huntington Ingalls, Cirrus Logic, Delta Air Lines, and Skyworks Solutions were also down.

Insurance stocks surged after Hurricane Milton weakened. HCI Group, Heritage Insurance Holdings, and American Coastal Insurance saw gains. Everest Group also closed up. Energy stocks rallied on the back of a +3% jump in WTI crude oil. Cybersecurity stocks also strengthened. GXO Logistics was up after exploring a potential sale.

Mosaic saw gains after hurricane Milton spared damage to the company’s phosphate-production hub. Celsius Holdings rose after upbeat outlook comments. CVS Health Corp was up after an upgrade. Earnings reports expected on 10/11/2024 include Bank of New York Mellon, Blackrock Inc, Fastenal Co, JPMorgan Chase & Co, and Wells Fargo & Co.



Read more at Nasdaq: Stocks Close Lower as US Price Pressures Persist