CPI Numbers Come in Cooler

Economic Indicators - The Consumer Price Index (CPI) report showed a slight decrease in inflation metrics, with month-over-month CPI down by 10 basis points to +0.3% from +0.4% and core CPI down to +0.2% from +0.3% [2][3] - Year-over-year headline CPI increased to +3.0%, which is 10 basis points lower than anticipated, while core CPI year-over-year also decreased to +3.0% for the first time since May [3][4] Market Reactions - Following the CPI report, pre-market futures surged, with the Dow increasing from +87 points to +210 points, the S&P 500 from +23 to +41, and the Nasdaq from +125 to +222 points [1][2] - Bond yields decreased by 20 basis points from a month ago, reflecting the softer inflation metrics [4] Company Earnings - Procter & Gamble (PG) reported fiscal Q1 earnings of $1.99 per share, beating expectations by 9 cents, resulting in a stock increase of +2.7% [5] - General Dynamics (GD) exceeded earnings expectations by 4%, reporting $3.88 per share, with shares rising by +4.25% [6] - HCA Healthcare (HCA) reported earnings of $6.96 per share, surpassing the expected $5.65, leading to a +4.35% increase in shares [6] Upcoming Market Events - The Federal Reserve is expected to cut interest rates by 25 basis points next week, potentially bringing rates below 4% for the first time in three years [4][7] - The Q3 earnings season is set to peak next week, with over 300 companies reporting, including major players like Microsoft, Alphabet, Apple, and Amazon [8]