Investing.com– U.S. stocks fell on Thursday as investors digested the latest inflation data ahead of a much-anticipated speech by Federal Reserve Chairman Jerome Powell.
At 12:57 ET (17:57 GMT), it was down 139 points, or 0.3%, while the index was down 0.3% and down 0.3%.
New signs of strong inflation are emerging
Data released last Thursday showed that US producer prices rose at a faster-than-expected annual pace in October, rising 2.4% from a year earlier, up from 1.9% in September and above economists’ estimates of 2.3%.
This month, the rate came in at 0.2%, up sharply from the 0.1% revised high in September and in line with forecasts.
Excluding highly volatile items such as food and fuel, the reading came in at 0.3% month-on-month, in line with estimates. Year-on-year, the so-called “core” index rose by 3.1%, compared to expectations of 3.0%.
This follows Wednesday’s consumer prices, as the price level rose slightly year-on-year, while remaining pegged above 3%.
“The PPI report broadly supports the CPI in terms of declining inflationary pressures. For now, however, the outlook for core PCE is soft enough to keep the Fed on track for a rate cut in December,” said Kyle Chapman, FX Markets Analyst at the Ballinger Group.
Powell is focused
The new inflation data comes ahead of a speech scheduled for 3pm ET. The Fed official’s comments will be closely watched for clues as to whether Powell shares recent sentiments from other Fed members, who have suggested the interest rate cycle may be shallower than expected amid a high level of neutrality.
“Fed officials have also assumed that the US policy interest rate has risen, and Jay Powell may follow that path today,” Macquarie said in a statement.
Traders continue to expect the Fed to deliver another 25 basis point rate hike in December.
Disney Broadcast business shines in Q4, Cisco slips into hot outlook
Walt Disney (NYSE: ) stock jumped 7% after the entertainment giant reported better-than-expected revenue and earnings in the fourth quarter, boosted mainly by strength in its core streaming business, which helped power a 14% jump in revenue.
Additionally, Cisco Systems’ (NASDAQ:
Advanced Micro Devices (NASDAQ: ) stock traded just below the flatline after the chip maker said it would lay off 4% of its global workforce, or about 1,000 positions.
Elsewhere, Tapestry (NYSE: ) stock rose 12% while Capri (NYSE: ) pared losses to rise more than 4% after two US-based fashion houses called off their merger after the deal was blocked -Federal Trade Commission.
