Stock Futures Pivot Lower After CPI Shock

September CPI rose 0.4%, higher than the anticipated 0.3% rise

Managing Editor
Oct 13, 2022 at 9:22 AM
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Stocks futures are pointed sharply lower this morning. Futures on the Dow Jones Industrial Average (DJI) were once indicating a roughly 250-point open higher, thanks to a resurgent British pound. However, Dow futures, as well as Nasdaq-100 (NDX) and S&P 500 (SPX) futures, have since pivoted lower as the latest inflation data reverberates through Wall Street.

September's consumer price index (CPI) rose 0.4% last month, higher than the 0.3% analysts anticipated. Year-over-year, inflation is up 8.2%, even with the U.S. Federal Reserve aggressively hiking interest rates. In response to the hotter-than-expected data, the 10-year Treasury yield climbed back above 4%. 

Continue reading for more on today's market, including:

  • Lockheed Martin stock hit with pre-earnings bear note
  • Unpacking PepsiCo's upbeat quarterly report. 
  • Plus, Delta's big day; and two stocks attracting analyst attention. 

OV Futures Oct 13

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw 807,256 million call contracts and  599,711 put contracts traded on Wednesday. The single-session equity put/call ratio fell to 0.74, while the 21-day moving average stayed at 0.68.
  2. Delta Air Lines, Inc. (NYSE:DAL) is 1.2% higher premarket, after the company's encouraging current-quarter forecast overshadowed a small third-quarter earnings miss. Delta stock is down 25.3% year-to-date, and has recently ran into historical resistance on the charts.
  3. Comcast Corporation (NASDAQ:CMCSA) is down 0.2% in electronic trading, after Citigroup upgraded the cable company to "buy" from "neutral," but also cut its price target to $36 from $42. Meanwhile, Morgan Stanley lowered its price objective to $45 from $50. CMCSA is down 43% in 2022. 
  4. Biogen Inc (NASDAQ:BIIB) is flat ahead of the open, despite Stifel upgrading the drug stock to "buy" from "hold," and hiking its price target to $299 from $223. The analyst praised Biogen's Alzheimer's drug, noting it could be "more competitive than its peers." BIIB is hanging on to its year-to-date breakeven level. 
  5. Initial and continuing jobless claims are due out today.


European Markets Rise as British Pound Surges

Asian markets fell on Thursday as investors looked ahead this morning’s CPI reading over in the U.S. Traders also digested news that the Taiwan Semiconductor Manufacturing (TSM) was able to nab a one-year license from the U.S. to continue ordering equipment for its China expansion, amid the recent crackdowns on semiconductor selling. The Hong Kong Hang Seng led the pack in its losses with a 1.9% drop, while the South Korean Kospi wasn’t far behind, dropping 1.8%. Meanwhile, the Nikkei in Japan shed 0.6% and the Shanghai Composite in China took a 0.3% haircut.

In Europe, stocks are higher amid news that the British government is pedaling backwards on its highly controversial decision to end its bond-buying program in an effort to settle the choppy market. In response, the British pound has been surging. At last glance, the London FTSE is up 0.4%, the French CAC 40 has added 0.9%, and the Frankfurt DAX has surged 1.4%.



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