Dow Jones, S&P 500 and Nasdaq fall after warmer-than-expected inflation

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• Thu Oct 10, 2024 6:30am MST

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  Technology stocks are falling after consumer prices rose more than expected in September

  The major averages opened lower on Thursday after the monthly consumer price index (CPI) came in higher than expected, raising expectations that the Federal Reserve will opt for a smaller rate cut at its meeting next month.

  The Dow Jones Industrial Average futures (^DJI) fell nearly 0.2%, while the S&P 500 (^GSPC) fell roughly 0.3% to slide to their new all-time high. The tech-heavy Nasdaq Composite (^IXIC) also fell 0.5%.

  Technology stocks (XLK) led the declines, followed by consumer discretionary (XLY). On the other hand, energy stocks (XLE) rose as oil rose Thursday morning.

  Investors may expect the Federal Reserve’s next rate cut to be 25 basis points instead of 50 after inflation rose 0.2% in September, more than the 0.1% increase Wall Street expected, according to the latest government data.

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  Thu Oct 10, 2024 5:55am MST

  Delta shares fall after missed earnings, CEO blames Crowdstrike

  Delta Air Lines ( DAL ) reported third-quarter earnings Thursday morning that missed Wall Street expectations, Yahoo Finance’s Brad Smith reports. The miss sent its stock down as much as 7% in premarket trading before paring losses.

  Here’s a look at its performance compared to analyst estimates compiled by Bloomberg.

  • Adjusted net income: $971 million versus $981 million expected

  • Adjusted earnings per share: $1.50 versus $1.52 expected

  • Revenue: $14.59 billion vs. $14.68 billion expected

  Delta said it forecast fourth-quarter earnings per share of $1.60 to $1.85, with the $0.73 midpoint slightly lower than the $0.78 Wall Street analysts had expected, according to Bloomberg data.

  Delta CEO Ed Bastian blamed disruptions caused by a widespread CrowdStrike outage in mid-July. Problems with CrowdStrike’s cybersecurity software, used by Delta, forced the airline to cancel thousands of flights and wiped out $380 million in revenue this quarter, he said.

  “We had 86 great days and five days that were influenced by CrowdStrike,” Bastian told Yahoo Finance.

  Read the full story here.

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  Thu Oct 10, 2024 5:42 AM MST

  Unemployment claims unexpectedly rise to the highest level since August 2023

  Weekly unemployment claims rose more than expected last week. This is the latest sign that while the labor market has shown signs of strength, there are still signs of a cooling in the labor market.

  New data from the Department of Labor shows that 258,000 initial unemployment claims were filed in the week ending Oct. 5, up from 225,000 the week before and more than the 230,000 economists expected. This marked the highest weekly unemployment claims since August 2023.

  Meanwhile, continuing claims for unemployment benefits stood at 1.86 million, up 42,000 from the previous week.

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  Thu Oct 10, 2024 5:32 AM MST

  Prices will rise more than expected in September

  A closely watched report on U.S. inflation showed that consumer prices rose more than expected in September, according to the latest Bureau of Labor Statistics data released Thursday morning.

  The consumer price index (CPI) rose 2.4% in September from the previous year, an acceleration from the annual price increase of 2.5% in August. The annual increase was higher than the 2.3% that economists had expected.

  The index rose 0.2% last month, above Wall Street’s expectations for a 0.1% increase.

  On a ‘core’ basis, which excludes the more volatile costs of food and gas, prices rose 0.3% in September from the previous month and 2.4% from last year. Core prices rose 0.3% month-on-month and 3.2% year-on-year in August. Both the monthly and annual headline numbers were hotter than economists expected.