With the next major U.S. inflation report about to land on Thursday, traders and investors continued to cling to hopes that the data will contain enough signs of easing price pressures to help move the needle on the Federal Reserve’s December rate hike.Economists and traders are expecting Thursday’s consumer-price index report for October to produce the first annual headline reading below 8% of the past eight months.
There’s no shortage of material for financial markets to parse in Thursday’s CPI report. On one hand, October’s CPI is likely to include another sharp monthly reading, of 0.6% versus 0.4% in September, based on the forecasts of economists polled by The Wall Street Journal. On the other hand, the monthly core reading, which strips out food and energy to provide a less volatile read on inflation, is seen as dropping to 0.5% from 0.6% previously.
Ahead of Thursday’s CPI report, Allspring is heading into consumer-staples and energy stocks rather than the broader S&P 500 index SPX , and has been overweight U.S. equities relative to those of Europe, while considering taking positions in real-estate investment trusts, Jacobsen said via phone. “Everyone is, again, looking for a pivot in CPI,” Gang Hu, a TIPS trader with New York hedge fund WinShore Capital Partners, said. “The market is looking for a reversal, this time with good reason, and is expecting the housing and medical components of the report to turn. The market is also looking ahead to see whether or not the economy will slow down at some point, regardless of the CPI number, which would fix the inflation problem.
Pivot is in the Horizon..
Gas = $4.11 per gal here in Indy.
Still baffled by where will the CPI print at? Head here:
Stock market getting killed. If you voted blue you are getting EXACTLY what you voted for. Brace for the massive loss in 2023.