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MarketBites💸: Inflation & Stocks Both Roar Higher

 

 

Welcome to MarketBites! Here's all you need to know about yesterday's market news.

 

“If you spend too much time thinking about a thing, you'll never get it done.”

 - Bruce Lee

 

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PORTFOLIO MANAGER COMMENTARY

The stock market staged a miraculous mid-day comeback on Thursday to end the day up 2.6%. Thursday morning the market was down almost 2% after September's inflation report came in higher than expected. Year-over-year inflation rose 8.2% vs. 8.1% expected. This most likely seals the deal for at least a 0.75% rate hike by the Federal Reserve next month. 

 

So why did the market erase losses and turn positive for the day? Some on Wall Street point to day traders and programmed buying by institutions. At one point, the S&P 500 had given back 50% of its post-pandemic rally, which likely triggered some programmed buying/rebalancing. 

 

On the earnings front, Domino's Pizza, Delta Airlines, and Walgreens all gained on better-than-expected results. 

 

Bank earnings kick into high gear today with JPMorgan and Citigroup reporting. 

By Raymond Kanyo

Investment Analyst

CHART OF THE DAY

redfin rent decline

 

According to Redfin, rent prices started to decline in September but they haven't shown up in inflation reports yet. Next month's inflation report should start to reflect the decline in rents, which would put material downward pressure on inflation. 

By Raymond Kanyo

Investment Analyst

 

WHAT ELSE IS HAPPENING

  • Netflix is ready to debut ad-supported subscription tier  - read here
  • Black Friday is here - read here
  • The cost of living adjustment for 2023 is set at 8.7% - read here