Aug PCE inflation data matches estimates, how Trump's new tariffs could impact markets and business

Group 1: Tariff Impacts - President Trump has announced new tariffs on pharmaceuticals, furniture, and heavy trucks, with rates of 50% on kitchen cabinets and 30% on upholstered furniture set to take effect next week [1][7][10] - Pharmaceutical companies can avoid tariffs if they invest in manufacturing plants in the U.S., with an estimated total investment of $350 billion announced recently [2][9] - The furniture industry is facing pressure due to reliance on foreign imports, while U.S.-based manufacturers like Ethan Allen may benefit from the new tariffs [13][14] Group 2: Market Reactions - Stock futures showed mixed reactions, with some pharmaceutical stocks rising due to investments in U.S. manufacturing, while furniture stocks like William Sonoma faced pressure [12][13] - The Dow is indicating a gain of about 0.5%, while the S&P and NASDAQ show smaller increases, reflecting investor sentiment amid tariff announcements [6][16] - The market is reacting cautiously to the tariff news, with skepticism about the full implementation of these tariffs affecting stock performance [17][18] Group 3: Economic Indicators - The PCE index, the Fed's preferred inflation gauge, came in at 0.3%, with consumer income and spending rising more than expected, indicating economic resilience [3][22] - Core PCE inflation is at 2.9% year-over-year, aligning with expectations and suggesting that inflation is not significantly increasing despite tariff impacts [22][24] - The Federal Reserve is expected to consider rate cuts in October and December, influenced by the current economic data and inflation outlook [28][29] Group 4: Company-Specific Developments - Costco reported fourth-quarter results with sales and earnings exceeding estimates, but shares fell due to same-store sales slightly missing expectations [33] - Oakllo's stock is declining after Goldman Sachs initiated coverage at neutral, citing risks as the company has yet to apply for permits for its first nuclear power plant [34] - Boeing shares are rising as the FAA plans to ease restrictions on inspections and deliveries of the 737 Max, allowing for increased production [35]