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forexmony.com – U.S. stocks traded mixed on Thursday as investors digested the latest inflation data ahead of a much-anticipated speech from Federal Reserve Chairman Jerome Powell.
At 09:50 ET (14:50 GMT), the Dow Jones Industrial Average was up 55 points, or 0.1%, while the S&P 500 was down 2 points, or 0.1%, and the Nasdaq Composite was down 30 points, or 0.2%.
Powell Speech, PPI Data in Spotlight
Investors will focus on a speech by Federal Reserve Chairman Jerome Powell later in the session for further cues on monetary policy, after the central bank cut interest rates by 25 basis points last week.
How Powell sees inflation evolving in the coming months could be a key factor in driving market sentiment, especially as some economists expect President-elect Trump’s policy proposals to put renewed upward pressure on prices — and persuade the Federal Reserve to leave interest rates higher.
Data released earlier Thursday showed that U.S. producer prices rose at a faster-than-expected annual rate in October, rising 2.4% from a year earlier, up from 1.9% in September and above economists’ estimates of 2.3%.
For the month, the measure was 0.2%, accelerating from an upwardly revised 0.1% in September and in line with expectations.
Excluding more volatile items such as food and fuel, growth was 0.3% on a monthly basis, in line with estimates. On a yearly basis, the so-called “core” index rose 3.1%, compared with expectations of 3.0%.
This comes on the heels of Wednesday’s consumer price data, which saw the headline rate rise slightly on an annual basis, while core inflation held steady above 3%.
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“The PPI report broadly supports the CPI in terms of slowing progress against underlying inflationary pressures. But for now, the outlook for core CPI is weak enough to keep the Fed on track to cut rates again in December,” said Kyle Chapman, FX analyst at Ballinger Group.
“However, the macroeconomic story and the outcome of the election have me increasingly convinced that the pace of easing will be significantly slower next year.”
Disney’s streaming business shines
On the institutional front, Walt Disney (NYSE: DIS ) shares rose 10% after the entertainment giant reported better-than-expected fourth-quarter income and revenue, helped in particular by the strength of its core streaming business, which helped drive a 14% jump in revenue.
In addition, Cisco Systems Inc. (NASDAQ: CSCO ) shares fell 2% after the networking equipment maker gave a tepid full-year outlook while reporting its fourth straight quarter of declining revenue.
Advanced Micro Devices Inc. (NASDAQ: AMD ) shares rose 1% after the chipmaker said it would lay off 4% of its global workforce, or about 1,000 jobs.
Elsewhere, Tapestry (NYSE: TPR ) shares rose 10% while Capri (NYSE: CPRI ) shares fell 4% after the two U.S.-based luxury fashion companies called off their merger after the Federal Trade Commission blocked the deal.
Crude Oil Gets Support from IEA Report
Oil prices rose slightly on Thursday, supported by the International Energy Agency raising its demand growth forecast.
By 09:50 ET, Brent crude futures were up 0.9% at $72.94 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up 1% at $69.09 a barrel.
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The International Energy Agency published its monthly report earlier on Thursday, raising its 2024 demand growth forecast by 60,000 barrels per day (bpd) while keeping its 2025 oil demand growth forecast at 990,000 bpd.
However, the Paris-based agency said global oil supply will significantly outpace demand in 2025 even if cuts by OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, remain in place as rising output from the United States and other outside producers outweighs slowing demand.
The report was welcomed even more after OPEC cut its demand forecast for the fourth straight month earlier in the week, citing ongoing concerns about slowing Chinese demand.
The U.S. Energy Information Administration releases weekly crude oil and product inventory data later in the session, a day later than usual following the Veterans Day holiday on Monday in the United States.
(Ambar Warrick contributed to this article.)
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