September's CPI reading came in hotter-than-expected, resetting the Fed's expectations
Stock futures are headed lower Thursday, as investors unpack a September consumer price index (CPI) reading that was hotter than expected. CPI rose 0.2% last month, higher than the forecasted 0.1% gain, dulling economist hopes that interest rates will be cut by another half percentage point at the Fed's meeting next month.
Elsewhere, initial jobless claims surged to 258,000 last week, moving to its highest level since early August 2023. Dramatic increases were seen in Florida and North Carolina following Hurricane Helene's landfall.
Continue reading for more on today's market, including:
- 2 stocks under $20: CCL and PLL
- Can earnings stymie the software sector slump?
- Plus, two earnings reports to unpack, and an analyst's thoughts on SMCI.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1.4 million call contracts and 850,908 put contracts exchanged on Wednesday. The single-session equity put/call ratio rose to 0.59 and the 21-day moving average stayed at 0.64.
- Delta Air Lines, Inc. (NYSE:DAL) stock is 3.3% lower premarket after a disappointing third-quarter financial report. The airline giant reported adjusted earnings of $1.50 per share and issued a fourth-quarter revenue forecast that was weaker than analysts expected. Coming into today, DAL was up 42.3% over the last 12 months.
- Domino's Pizza Inc (NYSE:DPZ) stock ports a 1.4% lead before the opening bell, looking to add to a fractional year-to-date gain after earnings. While the pizza chain operator's third-quarter earnings bested estimates, it said it will open 800 to 850 new stores globally in 2024, which is lower than it forecasted in July.
- Barclays slashed tis fiscal 2025 earnings expectations for Super Micro Computer Inc (NASDAQ:SMCI), leading the semiconductor stock 0.6% lower ahead of the open. The analyst reduced its estimates to $3.09 from $3.50 on gross margin fears, but maintained its "equal weight" rating and $42 price target. Year to date, SMCI is up 66.4%.
- Everything that is on tap this week.
China's Central Bank Creates Liquidity Tool
Asian stocks gained today, taking their cues from the record highs nabbed stateside. Japan’s Nikkei and South Korea’s Kospi rose 0.3% and 0.2% respectively, the former processing a higher-than-expected producer price index (PPI). China stocks bounced back, after the central bank rolled out a newly created liquidity tool to inject capital into the market. The Shanghai Composite responded with a 1.3% gain, while Hong Kong’s Hang Seng paced the region with a 3% pop.
Over in Europe, bourses are in the red as investors monitor Hurricane Milton and the looming consumer price index (CPI) data. At last check, London’s FTSE 100 is 0.2% lower, the French CAC 40 is off by 0.07%, and the German DAX is flat.