US economic data out this morning paints a mixed picture. Consumer Prices fell from last month but not as much as the street hoped (2.4% vs street 2.3% and previous 2.5%). Meanwhile US weekly initial jobless claims jumped (258K vs street 225K) although that could be hurricane related. The inflation number weakens the case for deeper US interest rate cuts, but the unemployment number strengthens it.
On the news, US treasury yields are down slightly although the 10-year rate remains above 4.05%. US index futures have dropped off a bit and have gone from flat before the news to down 0.2%-0.4%. In Europe today, the Dax is down 0.3% and the FTSE is down 0.4%. Gold has popped on the news and is now up 0.5% on the day suggesting a weakening in the US Dollar.
China markets bounced back overnight from a sharp trading correction earlier in the week. Hong Kong gained 3.0%, while Shanghai gained 1.3%. US Crude Oil has also rebounded, gaining 1.2%. Copper continues to struggle, trading down 0.2%.
Delta Air Lines is down 3.5% premarket after posting disappointing earnings ($1.50 vs street $1.52), and mixed guidance. The official kickoff to earnings season comes tomorrow with results due from JPMorgan Chase*, Wells Fargo, and Blackrock.
*Shares of JPMorgan Chase are held in some portfolios managed by SIA Wealth Management.