Dow Closes Higher as Focus Shifts to Consumer Inflation Data
Dow Ends Higher Despite Inflation Concerns
The Dow closed higher on Wednesday, shrugging off concerns about an uptick in inflation. Investor focus has shifted to the upcoming consumer inflation data for September, which will likely determine the Federal Reserve’s decision on rate hikes next month.
Market Performance
The S&P 500 rose 0.2% or 65 points, while the Nasdaq gained 0.7%. The Dow Jones Industrial Average rose 0.4%.
Wholesale Inflation and Consumer Inflation
Wholesale inflation surprised on the upside on Wednesday, but the market is eagerly awaiting the September consumer inflation report. Economists expect the headline consumer price index (CPI) to have slowed to 0.3% in September. The core measure, which excludes food and energy prices, is forecasted to remain steady at a 0.3% pace.
Morgan Stanley predicts that headline CPI rose by 0.32% in September, primarily driven by lower energy prices.
Fed Members Support Future Rate Hike
The Federal Reserve’s minutes from its September meeting, released on Wednesday, revealed that most Fed members were in favor of a future rate hike. However, these minutes are considered outdated due to recent shifts in the Fed’s tone caused by surging Treasury yields.
Exxon Mobil Acquires Pioneer Natural Resources
Exxon Mobil Corp fell more than 3% after announcing its acquisition of Pioneer Natural Resources in a $59.5 billion all-stock deal. The transaction, expected to close in the first half of 2024, aims to boost Exxon Mobil’s total upstream production and improve the combined entity’s operating cash flow and free cash flow in 2024.
Birkenstock’s Disappointing Stock Market Debut
Birkenstock Holding fell 12% on its stock market debut, ending the day at $40.20. This was below its opening price of $41 and initial public offering (IPO) price of $46 per share.
Plug Power’s Promising Future Growth
Plug Power Inc expects its revenue to jump to $6 billion by 2027 and $20 billion by 2030. This projected growth is significantly higher than its current rate, with revenue for 2023 expected to be around $1.2 billion. Sentiment on Plug Power has also been boosted by its potential to secure funding for hydrogen projects announced by President Biden.
Tempest Therapeutics’ Positive Liver Cancer Treatment Study
Tempest Therapeutics surged 1000% after an updated trial of its combination therapy for liver cancer showed improved results compared to the standard of care.
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