Stocks See Support from Favorable CPI Report

Market Performance - The S&P 500 Index is up +0.79%, the Dow Jones Industrials Index is up +0.66%, and the Nasdaq 100 Index is up +1.04% [1] - December E-mini S&P futures are up +0.68%, and December E-mini Nasdaq futures are up +0.89% [1] Economic Indicators - The US CPI report for September showed a +0.3% month-over-month increase and a +3.0% year-over-year increase, which was slightly weaker than expectations of +0.4% m/m and +3.1% y/y [2] - The core CPI report for September also showed a +0.3% m/m and +3.1% y/y, which was weaker than the expected +0.2% m/m [2] - The October S&P US manufacturing PMI rose by +0.2 to 52.2, exceeding expectations of no change at 52.0 [4] - The October S&P US services PMI increased by +1.0 to 55.2, stronger than the expected decline to 53.5 [4] - The final October University of Michigan US consumer sentiment index fell by -1.4 points to 53.6, which was weaker than the expected drop to 54.5 [4] Trade Relations - President Trump announced the termination of trade negotiations with Canada, citing an anti-tariff advertisement from Ontario that he found offensive [5] - The advertisement featured former President Reagan advocating for free trade and against tariffs, which Trump claimed was deceptive [6] - Lower courts have ruled Trump's reciprocal tariffs illegal, and if upheld by the Supreme Court, the government may need to refund collected tariffs and limit Trump's tariff powers [6]