CNBC Daily Opening: Inflation and Dot Chart


On December 17, 2024, a person shopped at a Whole Foods grocery store in New York City.

Spencer Pratt | Getty Images

This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

US government shutdown suspended
The U.S. government almost
Downtime avoided After President Joe Biden sign Saturday’s stopgap government funding bill. President-elect Donald Trump and Elon Musk on Wednesday sharply criticized its terms, thwarting an initially negotiated financing plan and specifically insisting on a two-year suspension of the U.S. debt ceiling.

Price increases slow slightly
U.S. headline inflation in November Only an increase of 0.1% from Octoberbased on the personal consumption expenditures price index. Prices rose 2.4% year-on-year. Both readings were 10 basis points below expectations. Core inflation was also 10 basis points below forecast. PCE is the Fed’s preferred inflation measure.

U.S. and Asia-Pacific markets rise
Friday, S&P 500 Index up 1.09%, Dow Jones Industrial Average increased by 1.18%, Nasdaq Composite Index up 1.03%. But all indicators Down this week. Asia-Pacific stocks rose on Monday Following positive finish on Wall Street on Friday. Japanese Nikkei 225 Index Up about 1.2% Honda, Nissan and Mitsubishi It is said Notify the National Ministry of Industry regarding the commencement of merge talks.

CEOs see the door
Blue chip companies e.g. boeing company, Intel and Starbucksannounced a CEO change this year. They are not alone. have 327 CEO leaves The number of employees at U.S. public companies increased this year through November, according to employment consulting firm Challenger, Gray & Christmas. That’s the highest level since the company started tracking data in 2010.

(PRO) Bet on Broadcom
NVIDIA It is undeniable that it is the king of artificial intelligence chips, and it is difficult to see any company replacing it in terms of market capitalization. But one portfolio manager told CNBC Broadcom Is “the next Nvidia in terms of performance potential”

bottom line

stock sold on wednesday After the Fed said it saw Cut interest rates by two percentage points The number in the coming year will be fewer than the four previously expected. “We have been trading sideways on 12-month inflation,” explain Federal Reserve Chairman Jerome Powell at a press conference.

But November’s PCE data was lower than expected. “Sticky inflation appears to be easing this morning,” said Chris Larkin, managing director of trading and investing at Morgan Stanley E-Trade.

The Fed emphasized again and again It is “data dependent”. So if the Fed had a chance to review the PCE data first, would they show the world a slightly different dot plot?

Chicago Fed President Austan Goolsbee told CNBC’s Steve Liesman that he has some confidence in this line of thinking and that he hopes the November inflation data “shows These few months of strength have been more of a bump than a change of path.” In other words, the economy is “still on track to hit 2%,” Goolsby said.

Powell says it again explain In July, the central bank will “rely on data but not on data points” when deciding when to cut interest rates. Even if November’s PCE index does suggest that inflation is back on a downward trajectory, one month of data won’t change that. Maybe two months of calm reading could do the trick?

These questions are rhetorical questions. Conditional questions are impossible to answer, especially in the market. But because of their uncertainty and circuitous nature, they underscore the fact that trying to time the market or game the market, especially during volatile times like these, may not be the best idea.

Instead, dig deeper into the fundamentals — earnings, cash flow, future revenue — that will affect stocks even if inflation and interest rates rise or fall. Remember the days when inflation reports and Fed meetings were just another day in the market?

—CNBC’s Jesse Pound, Brian Evans and Sean Conlon contributed to this report.



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