Stock indices finished today’s trading session mixed as core inflation data for August came in slightly higher than expected. The Nasdaq 100 (NDX) and the S&P 500 (SPX) gained 0.38% and 0.12%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) fell 0.2%.
The real estate sector (XLRE) was the session’s laggard, as it lost 1.05%. Conversely, the utilities sector (XLU) was the session’s leader, with a gain of 1.2%.
Furthermore, the U.S. 10-Year Treasury yield decreased to 4.26%, a drop of three basis points. Similarly, the Two-Year Treasury yield also fell, as it hovers around 4.98%.
Last updated: 11:54AM EST
Stocks are in the green so far in today’s trading after August’s CPI report came in. In addition, WTI crude oil is also up today as it hovers above $89 per barrel. The commodity’s recent uptrend has led to prices at the pump gaining upward momentum across the country. Indeed, the national average for regular gas was last $3.848 per gallon, up from last week’s reading of $3.803.
The highest prices can be found in California, where prices are substantially higher than the national average, at $5.484 per gallon. On the other hand, Mississippi is the state with the lowest gas prices, at $3.292 per gallon.
Last updated: 9:30AM EST
Stocks opened higher on Wednesday as investors weighed the CPI data with the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) advancing by 0.33%, 0.22%, and 0.28%, respectively, at 9:30 a.m. EST, September 13.
Last updated: 8:30AM EST
U.S. Futures declined on Wednesday morning following the Consumer Price Index (CPI) data. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down by 0.01%, 0.04%, and 0.07%, respectively, at 8:30 a.m. EST, September 13.
The Consumer Price Index (CPI) went up by 0.6% in August, on a seasonally adjusted basis, after rising by 0.2% in July. On a yearly basis, the index advanced by 3.7% before the seasonal adjustment, slightly higher than economists’ forecasts of a 3.6% rise and stubbornly above the Fed’s inflation target of 2%. The annual increase in August CPI of 3.7% was higher than the 3.2% seen in July.
Higher energy prices accounted for more than 50% of the rise in CPI, while higher home prices were another big contributor. The energy index advanced by 5.6% in August, while the food index increased by 0.2%, the same as in the month of July.
Core CPI (excluding food and energy costs) went up by 0.3% in August, following a rise of 0.2% in July. Over the past 12 months, core CPI advanced by 4.3% year-over-year, in line with expectations. On an annual basis, the energy index declined by 3.6%, while the food index rose by 4.3% year-over-year.
Meanwhile, higher mortgage rates are taking a toll on mortgage demand as mortgage applications to buy a home increased by 1.3% in the week ending September 10 but declined by 27% year-over-year. The refinance index declined by 5.4% as compared to 4.7% in the prior week.
Mortgage rates are going up, with the 30-year fixed-rate mortgage at 7.27%, compared with 7.21% in the prior week.
Joel Kan, a Mortgage Bankers Association economist, commented, “Mortgage applications decreased for the seventh time in eight weeks, reaching the lowest level since 1996. Given how high rates are right now, there continues to be minimal refinance activity and a reduced incentive for homeowners to sell and buy a new home at a higher rate.”
First published: 4:15AM EST
U.S. Futures are jittery on Wednesday morning as traders await the key Consumer Price Index (CPI) data, due today. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are up by 0.06%, 0.03%, and 0.01%, respectively, at 4:15 a.m. EST, September 13.
Experts predict August’s CPI to grow by 3.6% year-over-year, higher than July’s growth of 3.2%. Meanwhile, core CPI (excluding food and gas) is expected to have increased by 4.3% in August, lower than the 4.7% growth registered in July.
Markets are anticipating a pause in rate hikes in the FOMC meeting next week. However, any unexpected data from today’s inflation print could turn the Federal Reserve’s decision. The three major averages finished the trading day in red yesterday, weighed down by tech stocks. In the meantime, WTI crude oil futures are climbing higher, hovering around $89.23 as of the last check.
Coming to stock-specific news, software giant Oracle (ORCL) continued its downward slide on Tuesday, declining 13.5% after missing Q1FY24 sales estimates. Furthermore, tech biggie Apple (AAPL) revealed the pricing of the iPhone 15 and the iPhone 15 Plus at the “Wonderlust” event yesterday. The Apple Watch Series 9 also got a makeover, boasting a new chip and screen. Nonetheless, Apple failed to grab investor enthusiasm, with its stock down 1.7% following the event.
Meanwhile, the UAW union plans to go on a targeted strike at certain plants of the Big Three automakers if a new labor contract is not agreed upon. The deadline for the old contract with General Motors (GM), Ford (F), and Stellantis (STLA) is September 14.
Elsewhere, European indices are trading lower on Wednesday. U.K.’s gross domestic product fell more than expected by 0.5% in July. In a shocking move, oil giant BP Plc’s (BP) CEO, Bernard Looney, resigned yesterday after an investigation over his past relationships with colleagues showed a lack of transparency. CFO Murray Auchincloss has been appointed as the interim CEO.
Asia-Pacific Markets Ended Lower on Wednesday
Asia-Pacific indices finished lower on Wednesday. Japan’s wholesale inflation rate rose 3.2% year-over-year in August, marking the eighth straight month of decline.
Following the news, Japan’s Nikkei and Topix indices closed lower by 0.21% and 0.05%, respectively.
Similarly, Hong Kong’s Hang Seng index and China’s Shanghai Composite and Shenzhen Component indices ended down by 0.15%, 0.45%, and 1.14%, respectively.
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