CNBC Daily Open: Slowing Inflation Didn't Excite Investors
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Investors are more concerned about other issues than the slowing of inflation.
What you should know today
Prices are rising in the U.S., but they're doing so at a slower rate. Consumer prices for April
The price of the product rose by 0.4% in a month, and 4.9% compared to a year earlier
The estimate was 5%. The Core CPI (excluding food and energy) rose by 0.4% in the last month, and 5.5% compared to a year earlier, as expected.
Disney shares dropped 4.5% after the company announced a
Disney+ subscriptions drop by 2%
Its streaming service. The company still performed well in the last quarter. Its revenue rose by 13% over the previous year, to $21.82 Billion, and its profit was on par with Wall Street expectations.
Google announced new products and services in a keynote on Wednesday. Noteworthy:
Folding phone for $1,799
New artificial intelligence features
Search Engine
You can also find out more about the following:
Gmail
? a
New large language model
Google's generative AI is based on this technology. Google's shares rose 4.1%, thanks to investors who were delighted.
You can also find out more about the PROS.
Big Tech stocks can be
This year, the increase is up to 50%
Tom Lee, co-founder of Fundstrat, cited the lack of competition in these companies, their continued demand by consumers, and their strong future prospects.
Bottom line
The Consumer Price Index for April indicated that inflation is easing in the United States. The topic that dominated the markets last year seems to have received a muted reaction yesterday, suggesting investors are preoccupied by other concerns.
JPMorgan Chase sales and trading team
The S&P 500 was predicted to rise between 1% and 1.25%
On that better than expected number. The Dow Jones Industrial Average was mostly flat, while the S&P only added 0.45%. The Nasdaq Composite, with its high tech composition that is more sensitive to rates of interest, posted the largest gain at 1.04%.
The Federal Reserve may have suggested at its last meeting that the Federal Reserve could explain this tepid movement.
it might pause rate hikes
The CPI was less important to the markets, because the interest rate trajectory is more predictable now. This is because inflation is a major factor in determining interest rates. Though we should recall that New York Fed president John Williams warned central banks about the dangers of inflation.
Banks may still raise rates if inflation remains stubborn
).
Investors focused on the quarterly performance of banks and companies.
First, the turmoil has at least a silver-lining. First Citizens' stock jumped 7.45% following the announcement of a $257-million surge in its first-quarter earnings.
Silicon Valley Bank purchased in March
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The majority of the bad news was for companies who reported earnings. Airbnb fell 10.9%, and Twilio dropped 12.6% following the announcement of a weaker second quarter by both companies. Disney was punished by traders for its Disney+ loss in extended trading.
The CPI is not a good predictor of inflation in the future. However, the producer price index that will be released later today will show wholesale prices. Even so, unless the number is shocking, it's unlikely that it will have a major impact on markets. Investors' eyes will be on corporate and bank earnings.
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