Dow dropped 141, advancers slightly ahead of decliners & NAZ went up 60. The MLP index was off slightly to the 192s & the REIT index stayed in the 454s. Junk bond funds slid lower & Treasuries were in heavy demand. Oil eased lower but remained above 80 & gold soared 36 to 1796.
AMJ (Alerian MLP index tracking fund)
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US consumer prices last month accelerated at their fastest annual pace in 13 years as energy prices surged. The
consumer index price index rose 5.4% year over year in Sep,
according to the Labor Dept, matching the Jul reading for the
hottest print since 2008. Prices increased 0.4% month over month. The forecast was expecting prices to rise 5.3% annually & 0.3% in Sep. Energy prices climbed 1.3% in Sep & are now up 24.8% over the past year. Food
prices, meanwhile, jumped 0.9% last month & are now up 4.6% annually.
Prices for meats, poultry, fish & eggs, have climbed 10.5% this
year while beef prices are up 17.6%. Core prices, which exclude food & energy, ticked up 0.2% in Sep & 4% annually, matching expectations.
Prices surge by most in 13 years as energy bills spike
Sentiment among US small business owners plunged in Sep as pandemic-induced supply disruptions & a persistent labor shortage weighed on the economy's recovery. The
National Federation of Independent Business said that its
optimism index fell in Sep by one point to 99.1, the lowest since
Mar. 5 of the 10 components declined, while just 3 improved. "Small
business owners are doing their best to meet the needs of customers,
but are unable to hire workers or receive the needed supplies and
inventories," NFIB chief economist Bill Dunkelberg said.
"The outlook for economic policy is not encouraging to owners, as
lawmakers shift to talks about tax increases and additional
regulations." Owners expecting better business conditions over the next 6 months decreased to the lowest level since 2012. Labor costs & quality were cited as the biggest threats to small business owners. That's
in part because small businesses are struggling to find workers to fill
open positions. About ½ of all owners reported job openings
they were unable to fill, a record high for the 3rd consecutive month.
The number of available jobs remains far above the 48-year historical
average. Meanwhile, about 42% of small
businesses reported raising compensation — another 48-year record high. An additional 30% of owners said they plan to increase compensation over
the next 3 months.
Small business optimism plunges in September as labor shortage persists
The House approved a $480B hike to the debt ceiling, averting a potentially catastrophic US default for at least another 2 months & teeing up another showdown over a long-term solution. The Dem-controlled House passed the measure in a 219-206 vote along party lines. The vote brought the House in sync with the Senate, which passed its own bill last week raising the debt limit by $480B. Pres Biden is expected to sign the bill. The resolution will allow the federal gov to cover its debt obligations thru Dec 3. Dem lawmakers will use the temporary reprieve to identify a long-term solution to raise the debt limit without Rep support. The debt ceiling bill’s passage followed a lengthy standoff on Capitol Hill. Treasury Secretary Janet Yellen & business leaders had warned of a potential economic catastrophe if Congress did not approve a hike before the gov runs out of money on Oct 18.
House votes to lift debt ceiling, likely delaying default showdown until December
The inflation news & survey with small business owners was not pretty. The data above is for consumer prices which are history. The data tomorrow for producer prices will be more important because they signal future inflation for consumers,
Dow Jones Industrials
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