The Dow posted a back-to-back loss on Wednesday after a gauge...
The Dow posted a back-to-back loss on Wednesday after a gauge of consumer inflation for August rose on the back of higher energy costs, while the S&P 500 and Nasdaq Composite ended with modest gains. The Dow Jones Industrial AverageDJIA shed about 70 points, or 0.2%, ending near 34,565. That marked its second day in a row of declines. The S&P 500 IndexSPX added 0.1% and the Nasdaq Composite IndexCOMP finished at a 0.3% gain. Both the Dow and S&P 500 struggled for direction earlier Wednesday, with both indexes flipping between small gains and losses as investors considered whether the Federal Reserve will be promoted to increase its policy rate any further this year to tamp down inflation further. Its benchmark rate was increased to a 22-year high in July. The consumer price index for August showed the yearly rate of inflation climbed to 3.7% from 3.2% in July, and up from a 27-month low of 3% in June.
The International Energy Agency has forecast a ...
The International Energy Agency has forecast a peak in oil, natural gas, and coal demand before 2030, signaling the start of the decline of the fossil fuel era. IEA head Fatih Birol emphasized the importance of accelerating the energy transition through stronger climate policies to meet climate goals and avoid stranded fossil fuel assets.
The energy sector is off to a mixed-to-higher start, supported by strength in the underlying commodities. Pre-market gains have been limited for energy stocks amid weakness in major equity futures which are lower following the release of hotter-than-expected August CPI data.
WTI and Brent crude oil futures are extending multi-month highs on concerns over tight supply. Yesterday, the IEA said recent output cuts from Saudi Arabia and Russia will lock in a substantial market deficit through the fourth quarter. The tight market supply is being reflected in the spread between front-month Brent contracts and contracts for delivery six months further which is at $4.68, a width not breached since last November. Additionally, OPEC on Tuesday stuck to its forecasts for robust growth in global oil demand in 2023 and 2024. Traders will now be waiting for this morning’s EIA data as last night’s API release showed builds in crude, gasoline, and distillates.
Natural gas futures are higher on lower production and expectations for a colder winter, which should increase heating demand.
Markets are little changed after the fresh inflation numbers came in broadly in line with expectations....
Markets are little changed after the fresh inflation numbers came in broadly in line with expectations. The S&P 500 is set to open roughly flat, while expectations have solidified for the Federal Reserve to hold interest rates steady when it meets next week.
CPI report shows annual U.S. headline inflation rate of 3.7% — a 14-month high
The numbers: U.S. consumer prices leaped 0.6%...
The numbers: U.S. consumer prices leaped 0.6% in August — the biggest increase in 14 months — largely because of higher oil prices. Yet inflation more broadly did not appear to show worrying signs. If energy and food are set aside, so-called core inflation rose a smaller 0.3% in August, the consumer price index showed.
That was a tick above Wall Street expectations, however, and cast a negative tone over financial markets. The core rate has increased a slower 0.2% in the prior two months.
The yearly rate of inflation moved up to 3.7% last month from 3.2% in July and a 27-month low of 3% in June.
The annual rate of core inflation, for its part, decelerated to 4.3% from 4.7% and touched the lowest level in 22 months.
