US Markets 12 Oct: Nasdaq & Dow Retreat Amid Inflation Concerns and Yield Surge
US Markets LIVE, 12 Oct 2023: The US stock market indexes opened in the green on Thursday after the September Consumer inflation came slightly higher than expected.
Dow Jones opened higher by 40.78 points at the 33845.65 level, while the S&P 500 made a positive opening of 3.99 points at the 4380.94 level. The Nasdaq Composite index also made a slightly higher opening of 12.79 points at the 13672.47 level.
US Markets Live Today
At 11.50 a.m. EDT, The key US stock market indexes erased most of their early gains. Dow Jones turned negative soon after opening and is trading lower by 89.53 points or 0.26 percent at the 33715.34 level while the S&P 500 is trading flat to negative, down by 3.21 points or 0.07 percent at 4373.74 levels. The tech-heavy Nasdaq Composite trimmed most of its early gains but is trading slightly higher by 21.16 points or 0.15 percent at 13680.84 levels.
US Market News
U.S. stocks dipped, as the consumer prices came slightly higher than expected in September. The CPI inflation rose 0.4% on a monthly basis while 3.7% from the previous year, the expectation was 0.3% and 3.6% respectively. The widely watched core CPI number, which excludes volatile items like food and energy came in line with the expectation at 0.3% monthly and 4.1% annually.
The US stock futures turned negative after the latest inflation report from their day’s high. Treasury yields, which fell after the Fed official’s dovish remarks in the last two days turned upwards. The 10-year Treasury yield is now at 4.653%, on Wednesday it was settled at 4.564%
On Thursday, the Labor Department reported that the number of Americans applying for unemployment benefits remained unchanged last week. The unemployment claims at 209,000 for the week ended Oct 7, showed the US job markets remain strong despite Fed’s monetary policy tightening.
Stocks in News Today
Delta Air Lines reported its quarterly results before the opening bell. The company’s profit jumped almost 60% but trimmed its full-year profit outlook due to higher fuel costs. The share price of Delta Air Lines is trading lower by 1.36%.
The healthcare company Walgreen Boots Alliance reported quarterly results, it fell short of profit expectations but beat revenue estimates for the quarter. The share price of Walgreens Boots Alliance is up by 4.35%.
The multinational Pizza Restaurant Domino’s Pizza reported its quarterly earnings, the company beat profit expectations but fell slightly short on revenue. The Share of Domino’s Pizza rose by 0.76%.
The share of retailer Target gained 0.78% after Bank of America upgraded the stock from neutral to buy. According to BoA, the stocks look attractive after the recent correction, and the company’s margins could improve in the year ahead.
Crude Oil Prices
The crude oil prices are trading higher on Thursday as the International Energy Agency (IEA) lifted its demand forecast for the current year. However, the demand for 2024 has been cut as compared with its earlier forecast.
The crude oil prices had fallen on Wednesday by around 2% after the indication of huge stocks in US crude last week and the demand outlook from China
The US WTI crude is trading higher by 0.73 at $84.09 per barrel while London-based Brent crude oil is up by 0.91% at $86.60 per barrel.
US Markets at Close
US stock markets erased early gains and ended lower on Thursday, as Treasury yield surged due to higher consumer inflation and strength in labor market data. The 10-year Treasury yield was at 4.702%, while it was settled at 4.564% on Wednesday. Dow Jones and S&P 500 fell 0.51 percent and 0.62 percent, while the technology-heavy Nasdaq composite index closed lower by 0.63 percent at close.
Also, read – US Market: Stock Futures Climb Ahead of CPI Inflation Data
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