Dow fell 90, decliners over advancers better than 3-2 & NAZ recovered 113 on strong earnings reports. The MLP index dropped 2+ to the 244s following recent strength & the REIT index was off 2+ to the 323s. Junk bond funds fluctuated & Treasuries saw limited selling, boosting yields. Oil was up pennies in the 83s & gold slid back 4 to 1992.
AMJ (Alerian MLP Index tracking fund)
Inflation accelerated in Sep but consumer spending was even stronger than expected, according to a Commerce Dept report. The
core personal consumption expenditures (PCE) price index, which the Federal
Reserve uses as a key measure of inflation, increased 0.3% for the
month, in line with the estimate & above the 0.1% level for Aug. Even
with the pickup in prices, personal spending kept up & then some,
rising 0.7%, which was better than the 0.5% forecast. Personal income
rose 0.3%, one-10th of a percentage point below the estimate. Including
volatile food & energy prices, the PCE index increased 0.4%. On a
year-over-year basis, core PCE increased 3.7%, one-10th lower than
Aug, while headline PCE was up 3.4%, the same as the prior month. The
Fed focuses more on core inflation on the belief that it provides a
better snapshot of where prices are headed over the longer term. Core
PCE peaked around 5.6% in early 2022 & has been on a mostly downward
trek since then, though it is still well above the Fed’s 2% annual
target. The Fed prefers PCE as its inflation measure as it takes into
account changing consumer behavior such as substituting lower-priced
goods as prices increase. This is the last inflation report the Fed will see before its 2-day
policy meeting next week. Traders are pricing in a near-100% chance that
the central bank will announce no rate hike when the meeting concludes
next Wed.
Key Fed inflation gaug'e rose 0.3% as expected in September; spending tops estimate
Americans plan to spend a record $12.2B on Halloween this year, beating last year's blowout of $10.6B, according to a report by the National Retail Federation (NRF). The per-person spend this Halloween is forecasted to jump to $108.24, up from the previous record of $102.74 in 2021. Shoppers' most significant splurge will be on costumes. Consumers could shell out a collective $4.1B on costumes this year, up from $3.6B in 2022. Money spent on decorations is expected to reach $3.9B & cash allocated to candy purchases will jump to $3.6B from $3.1B last year. More Americans also plan to join in on Halloween fun, with 73% of respondents saying they will participate in Halloween-related activities this year, up from 69% in 2022. Despite the optimistic spending forecast, a report by PowerReviews said that economic challenges will impact how 73% of Americans shop for the upcoming Halloween holiday. 24% plan to reuse/recycle existing costumes & 34% will buy cheaper Halloween candy. "More Americans than ever will be reaching into their wallets and spending a record amount of money to celebrate Halloween this year," NRF Pres & CEO Matthew Shay said. "Consumers will be shopping early for festive decor and other related items and retailers are prepared with the inventory to help customers and their families take part in this popular and fun tradition."
Halloween spending will hit a new record but consumers weary of inflation's impact: report
Intel (INTC), a Dow stock, jumped after the company beat expectations for profit & sales. The chipmaker reported EPS of 41¢, adjusted, versus the LSEG estimate of 22¢.
It posted $14.2B in revenue for the qtr, ahead of expectations for $13.5B, but down 8% from the year-ago qtr. It marked INTC's 7th consecutive qtr of declining sales. The boost was largely due to strong demand for PCs & management’s
ability to stay on course for a number of initiatives it had previously
laid out for the company. JPMorgan analysts raised their price target from $35 to $37, writing
that INTC's next year of data center product launches & more could
help predict how the company's goals will progress over the next 3-5 years. The stock soared 3.14 (10%).
If you would like to learn more about INTC, click on this link:
club.ino.com/trend/analysis/stock/INTC_aid=CD3289&a_bid=6aeoso5b6f7
Intel pops 10% after earnings beat shows progress toward $3 billion in cost savings
High inflation remains a worry & strong holiday sales, beginning with Halloween sales, are being considered. Meanwhile the housing market is under pressure & auto business continues to be sluggish (that's being kind). The Dow has had a very tough time in the last 3 months (see below).
Dow Jones Industrials
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