US Stocks Tick Upward as Investors Eye CPI Report, Fed Commentary
"U.S. stocks steady ahead of inflation data release as investors seek clarity on monetary policy outlook.
At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average edged up 50 points, or 0.2%, the S&P 500 gained 7 points, or 0.1%, and the NASDAQ Composite added 15 points, or 0.1%.
Following recent highs, Wall Street’s main indexes paused, with traders awaiting inflation insights to gauge the Fed's next moves on interest rates."
CPI data, Fedspeak awaited
Investors grow cautious ahead of Wednesday's key consumer price index (CPI) data release.
October inflation is anticipated to have held steady from September, reflecting the ongoing resilience of the U.S. economy. However, any uptick could hinder the Federal Reserve’s timeline for future rate cuts. Following last week’s 25-basis-point rate cut, the Fed has signaled a data-driven approach to further policy adjustments.
Persistent inflationary pressures have sparked uncertainty around the extent of future rate cuts. According to CME FedWatch, traders are currently pricing a 70.7% chance of an additional 25-bps cut in December, with a 29.3% probability of rates staying unchanged.
In addition to CPI, the spotlight this week includes speeches from several Fed officials, with Fed Governor Christopher Waller and Richmond Fed President Thomas Barkin slated to speak Tuesday, potentially providing more clues on rate policy.
Home Depot earnings in focus
The quarterly corporate earnings season is winding down, though several companies are still set to release their latest results.
Home Depot (NYSE: HD) saw a modest 0.3% uptick in its stock after raising its annual same-store sales forecast. The company is betting on strong demand from professional contractors to counteract weaker consumer spending on large projects like kitchen renovations.
Shopify (NYSE: SHOP) surged 20% after the Canadian e-commerce company forecast fourth-quarter revenue growth that exceeded analysts' expectations, while Live Nation Entertainment (NYSE: LYV) gained 4% following a third-quarter profit beat, driven by cost controls and high ticket prices for concerts.
Hertz (NASDAQ: HTZ) dropped 9% after posting a larger-than-expected third-quarter loss, missing revenue estimates, and incurring depreciation charges from its fleet.
Tyson Foods (NYSE: TSN) rose 8.1% after reporting better-than-expected fourth-quarter earnings and revenue, along with a positive outlook for fiscal 2025.
Spotify (NYSE: SPOT) is set to report its earnings after the market close. The Swedish audio streaming company, which has been trimming headcount and slashing its marketing budget in an effort to manage costs, exceeded profit expectations in the second quarter.
Crude Prices Rise Despite OPEC's Lowered Demand Forecasts
"Oil Prices Rebound Despite OPEC's Continued Downward Revisions on Demand"Oil prices rose on Tuesday, recovering from recent declines, even as OPEC once again downgraded its global demand growth forecast.By 09:35 ET, the Brent contract was up 1.4%, reaching $72.81 per barrel, while U.S. crude futures (WTI) gained 1.5%, trading at $69.08 a barrel.In its latest monthly report, OPEC reduced its forecast for oil demand growth for the fourth consecutive month, citing concerns over weaker global consumption and lower prices. Additionally, the group delayed its planned output increase in response to these market challenges."OPEC Lowers Demand Growth Forecasts Amid Supply Stability Concerns"OPEC now expects global oil demand to grow by 1.82 million barrels per day (bpd) this year, and 1.54 million bpd next year, down from previous estimates of 1.93 million and 1.64 million bpd, respectively.This downward revision comes despite a recovery in oil prices, which had fallen by more than 5% in the previous two trading sessions. Market sentiment was dampened by disappointment over China’s new stimulus package and the weakening of Hurricane Rafael into a tropical storm, alleviating concerns over potential supply disruptions in the region.
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