Inflation Overview - The consumer price index (CPI) rose 2.9% year over year in August compared to 2.7% in July, with a month-over-month increase of 0.4% compared to July's 0.2% [2] - Core CPI remained unchanged, reflecting a 0.3% monthly and 3.1% annual increase, indicating stability in underlying inflation trends [2] Shelter Costs - Shelter costs increased by 0.4% in August, contributing significantly to the CPI's monthly rise, with rent up by 0.3% and lodging away from home rising by 2.3% [4] - Homebuilder stocks, such as Toll Brothers (TOL), may become more attractive as rising rent prices could drive more buyers to the market, especially with mortgage rates at their lowest in a year [5] Food Prices - Overall monthly food costs rose by 0.5% and 2.7% annually, with food at home increasing by 0.6% monthly and food away from home by 0.3% monthly [7] - Retailers like Walmart (WMT) may benefit from the increase in food costs, while premium dining establishments like Chipotle (CMG) are experiencing reduced consumer spending [9][10] Energy Sector - Monthly energy costs increased by 0.7% and were up 2.2% year over year, driven by a 1.9% rise in gasoline prices [11] - Oil companies such as Exxon Mobil (XOM) and Chevron (CVX) could capitalize on higher energy prices, especially if geopolitical tensions affect crude oil supply [12] Transportation Services - Used car and truck prices rose by 1.0% monthly and 6.0% annually, while airline fares increased by 5.9% month over month [13] - Long-term investment opportunities may arise in major automakers like General Motors (GM) and airlines like Delta Air Lines (DAL), which are expected to navigate inflationary pressures effectively [14] Apparel Industry - Apparel costs increased by 0.5% monthly and 0.2% annually, indicating tariff-driven inflation [15] - Companies with strong brand recognition and pricing power, such as Ralph Lauren (RL), may perform better despite overall consumer spending declines in the apparel sector [15][16]

Market Overview - The market is experiencing a bullish trend, with major indexes reaching record levels, including the Dow Jones Industrial Average up 1.36%, S&P 500 up 0.85%, and Nasdaq Composite up 0.72% [3] - Softer economic data, including a surprise increase in weekly jobless claims and a revision of nonfarm payrolls, may lead the Federal Reserve to consider cutting interest rates [2] Investor Sentiment - Many investors remain skeptical about the market's upward movement, often holding bearish views since the Great Recession [4] - There is a growing concern among money managers about the U.S.'s economic backdrop, including rising national debt and geopolitical tensions [4] Stock Performance - Despite broader concerns, individual stocks are identified as having potential for growth, with some currently perceived as "cheap" likely to appreciate in value [5] - The IPO market is thriving, and notable stock movements, such as Oracle's significant rally, highlight opportunities for investment [5] Future Outlook - If bearish investors do not shift their stance and begin buying, they risk losing clients to other investment opportunities [6]

You put it all together, what's the data telling us about the state of the economy. Joining us now is Michael Foli, chief US economist at JP Morgan, and Sam Stovall, CFR research chief investment strategist. Uh guys, welcome.Mike, how do you read uh this CPI and the uh market's reaction to it. Wonder if we're being uh perhaps overly sanguin about it, whereas perhaps in in uh April, the other direction. Yeah, it's going in the wrong direction.That's for sure. I do think we're seeing some tariff price pass th ...

Core Viewpoint - President Trump's legal team is seeking to expedite the process of removing Federal Reserve Board Governor Lisa Cook before the upcoming Federal Open Market Committee (FOMC) meeting, which is crucial for interest rate decisions [1][2][4]. Group 1: Legal Proceedings - Trump's lawyers have filed a request with the U.S. Court of Appeals for the District of Columbia Circuit to allow his attempt to fire Cook to proceed before the FOMC meeting next week [1][2]. - A lower-court judge had previously blocked Trump's attempt to remove Cook while her lawsuit against him is ongoing [1][4]. - The appeal seeks a ruling by Monday afternoon to influence the FOMC's decisions regarding open market activities [2]. Group 2: Economic Implications - Trump is advocating for a reduction in interest rates to stimulate economic growth and lower the costs associated with national debt [3]. - He has expressed dissatisfaction with Fed Chairman Jerome Powell for not lowering rates in 2025 and has previously considered firing him [3]. Group 3: Allegations and Responses - Trump cited allegations of mortgage fraud against Cook as justification for her removal, although Cook has denied these allegations [4]. - Trump anticipates that he will soon have a majority on the Fed board that will support lowering interest rates [4]. Group 4: Federal Reserve Independence - The judge's ruling emphasized the importance of Federal Reserve independence, suggesting that reinstating Cook serves the public interest [5].

Recent report from Moody's states that 33% of states in the US they are already in recession territory. It looks like Texas, California, Florida, New York, and North Carolina are responsible for majority of the economic growth happening right now. It makes sense the economic growth happening in these areas because of the tech sector.But the fact that we're not seeing growth in other states, that's less than ideal. So, add in the fact that the S&P 500's price to book value is now higher than it was in the 20 ...

Group 1 - U.S. consumer prices increased by 0.4% month over month in August, while the year-over-year gain was 2.9%, aligning with expectations when excluding food and energy prices [1] - Core prices also met expectations, indicating stability in inflation metrics, which supports the Federal Reserve's potential decision to cut interest rates next week [2] - The stock market showed positive movement on Thursday, reflecting investor sentiment in response to the inflation data [2] Group 2 - The New York Stock Exchange and Nasdaq observed a moment of silence to commemorate the 24th anniversary of the 9/11 terrorist attacks, highlighting the significance of the day in the financial community [3]

This is a Bloomberg Money Minute. U.S. consumer prices rose at a slightly higher pace than expected month over month in August, but the year over year gain matched expectations. Consumer prices rose 4/10 percent month over month and 2.9% year over year, stripping out volatile food and energy prices as the Fed prefers to do. Prices rose 3/10 percent in August from the month before and 3.1% year over year.Those so-called core prices matched expectations. And overall, this new report keeps the Fed on track to ...

Inflation Data and Federal Reserve Response - The Consumer Price Index (CPI) showed core prices rose by 3.1% in August, consistent with July's level, while month-over-month growth was slightly higher than expected at 0.4% compared to the anticipated 0.3% [1][2] - Headline inflation increased by 2.9% in August, up from 2.7% in July, indicating broad increases in goods, services, and shelter prices [2] - The inflation data suggests a 25-basis point rate cut is likely, but does not support a larger 50-basis point cut [3][6] Job Market Trends - Initial jobless claims rose to 263,000, the highest level in four years, indicating softening in the job market [4] - The economy added only 22,000 jobs in August, significantly below the expected 75,000, with the unemployment rate increasing to 4.3% from 4.2% [4][5] - Job growth for June was revised to a loss of 13,000 jobs, and July's growth was below trend, marking three consecutive months of slowing job growth [5][6] Market Expectations - Markets are pricing in a near certainty for a 25-basis point rate cut at the upcoming Federal Reserve meeting [6] - Fed Chair Jerome Powell indicated a potential shift in policy stance due to changing risk balances, suggesting a readiness to lower rates [6] - Former Kansas City Fed president Esther George noted that recent job market data supports the expectation of a 25-basis point cut [6]

Market Performance - S&P 500 and Dow Jones rose as traders anticipate interest rate cuts by the Federal Reserve, with S&P 500 hitting a new all-time intraday high [1] - The S&P 500 rose over 0.33%, Nasdaq Composite was up 0.42%, and Dow Jones increased by 0.21% [1] - The S&P 500 finished at all-time closing highs for two consecutive days, despite Dow Jones losing over 200 points [2] Inflation and Federal Reserve - The core consumer price index rose 0.3% from July, indicating relatively calm inflation [2] - Analysts expect the Federal Reserve to cut interest rates by 25 basis points next week, with two additional cuts anticipated this year [3] Sector Performance - Nine of the 11 sectoral indices were trading in green, with the health sector leading gains while communication services lagged [3] - Salesforce, Goldman Sachs, Apple, and Nike were among the gainers, while Amazon and Microsoft faced declines [4] Commodity Prices - Spot gold fell 0.5% to $3,624.11 per ounce, and crude oil prices decreased by 1.9% to $62.44 per barrel [4] Cryptocurrency - Bitcoin remained stable at $113,617.69 [5]

Group 1: Bitcoin Market Reaction - Bitcoin price remained stable around $114,000 as ETF flows reached an 8-week high, with a slight gain of 0.3% in the past day [1] - The consumer price index (CPI) data indicated a 0.4% inflation rise in August, surpassing the 0.2% increase in July [1][2] - Analysts at QCP Capital suggested that any volatility from the CPI data will be short-lived, noting that the Producer Price Index (PPI) generally leads CPI by 3-6 months [5] Group 2: Federal Reserve Expectations - Inflation over the past 12 months has risen to 2.9%, moving away from the Federal Reserve's 2% target, but hopes for a rate cut remain [2] - Following the CPI release, the percentage of investors expecting a 50 basis point cut in September decreased from 12% to 9% [3] - A prediction market indicated that 84% of users expect a 25 basis point cut, while 12% anticipate a 50 basis point cut [4] Group 3: Market Indicators - The U.S. Dollar Index (DXY) briefly touched 97.66 before recovering to 97.80, indicating fluctuations in response to economic data [6] - The European Central Bank decided to hold interest rates steady, contrasting with the Federal Reserve's upcoming decisions [6]