Stocks drop after inflation data, earnings reports
BNN Bloomberg
Stocks fell after a report showing inflation is running hot at a time when supply disruptions jeopardize the economy and the Federal Reserve gets ready to reduce stimulus.
Stocks fell after a report showing inflation is running hot at a time when supply disruptions jeopardize the economy and the Federal Reserve gets ready to reduce stimulus.
The S&P 500 dropped for a fourth day. The tech-heavy Nasdaq 100 outperformed as a faster-than-expected surge in inflation lifted companies best able to handle those price pressures. One exception was Apple Inc., which slumped after Bloomberg News reported the company will likely cut its projected iPhone 13 production targets for 2021. Delta Air Lines Inc. paced losses in U.S. carriers after saying rising jet-fuel prices are a threat to staying in the black. JPMorgan Chase & Co. also slid after a decline in consumer and commercial loans.
Prices paid by U.S. consumers rose in September by more than forecast, underscoring the persistence of inflationary pressures. A combination of unprecedented shipping challenges, materials shortages, high commodities prices and rising wages have sharply driven up costs for producers. Minutes from last month’s Federal Open Market Committee meeting -- out Wednesday afternoon -- will provide further insight on policy makers’ views toward inflation goals for tapering.
“Wednesday’s still elevated consumer-price index marks about six-months worth of hot inflation data -- suggesting that inflation is not as transitory as many investors previously expected,” said Nancy Davis, founder of the Greenwich, Connecticut-based firm Quadratic Capital Management. “The overall inflation story is being driven by supply-chain disruptions and a swift rise in prices, due to the labor shortage.”
Here are a few events to watch this week:
