Markets in a Minute - Another AI Chip
By: Zac Martin
Author: Zac Martin, Investment Associate
Weeks Ending October 24th – Another AI Chip
Consumer Price Index for September increased to 3.0%, however, Core Prices decelerated to 3.0%, from 3.1%. The acceleration in headline inflation was due to an increase in energy prices. The cooler Core inflation report moved US markets higher during Friday’s trading session, with the S&P 500 climbing 0.83%. Friday’s report moved Rate Cut odds for this Wednesday’s FOMC meeting by 0.25%, with the market expecting a 25bps cut to be announced.
Leading Economic Indicators for August declines by 0.5%, with the index declining 2.8% over the past six-months compared to a decline of 0.9% over the same period a year ago. The driving variable for this decline continues to be ISM New Orders and Consumer Expectations for Business Conditions. These components have declined -1.01% and -1.40%, respectively for six months.
Earnings: Currently, 29% of the S&P 500 constituency has reported, with 87% of those companies reporting above EPS estimates – well above the five-year average of 78%. Earnings revisions have been 63% positive, increasing the blended growth rate for Q3 to 10.4% up from 8.0% when Q3 estimates bottomed in early July.
The Week Ahead:
- FOMC Meeting (10/29)
- GDP Q3 First Preliminary Reading (10/30)
- Personal Consumption Expenditures (10/31)
- Earnings Ahead: META, GOOGL & MSFT (10/29) AAPL & AMZN (10/30)
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