S&P 500 Futures Dip Post CPI Report Amid Mixed Earnings News

S&P 500 E-Mini futures are down by 0.40% following a CPI report indicating a drop in overall inflation, although core inflation remains stable. Earnings results from Oracle and Broadcom positively impacted their stock prices. The market remains cautious with impending rate cuts and economic debates.

Date: 11-09-2024

AI Rating: 6

The recent report indicates a combination of mixed factors impacting the stock market. Notably, the S&P 500 E-Mini futures are down by 0.40% this morning after the Consumer Price Index (CPI) report was released. The report revealed that while consumer prices rose slightly in August, the annual inflation rate has reached a three-year low, suggesting a potential for the Federal Reserve to lower interest rates.

The report also covers significant earnings results impacting various stocks. Oracle (ORCL) reported a stronger-than-expected Q1, leading to an appreciation of over 11% in its stock price. Broadcom (AVGO) gained more than 5% following a favorable outlook due to Apple’s iPhone 16 launch.

On the other hand, GameStop (GME) reported weaker-than-expected Q2 revenue leading to a drop of more than 10% in its stock price. Similarly, Hewlett Packard Enterprise (HPE) experienced a more than 8% plunge due to a significant public offering. In addition, JPMorgan Chase (JPM) saw a decrease of over 5% after mixed guidance on expenses and interest income by the bank's president.

Key indicators affecting the overall market sentiment include the anticipated interest rate cuts. Analysts speculate a 67% chance of a 25-basis point cut by the Federal Reserve, which may sway investment decisions further. The current yield of the 10-year U.S. Treasury note is at 3.610%, down 0.95%. This scenario may lead investors to shift their portfolios in response to either holding onto assets or seeking yields elsewhere.

In summary, while there are some stock winners, such as Oracle and Broadcom, the market shows signs of caution amid significant loser stocks and ongoing economic uncertainties regarding inflation and rate cuts.

Stocks: ORCL AVGO TSLA HPE JPM PLAY GME MS WSM CRM