Sign InThursday Markets: Stock Futures Slip Ahead of September CPI Report; Tesla Gains.
Alex Vellor
Stock futures slipped Thursday as investors anxiously await September's Consumer Price Index (CPI) report.
The CPI data is set to be released at 8:30 a.m. ET and is expected to play a key role in shaping the Federal Reserve's next policy decisions. Futures tied to the Dow Jones Industrial Average fell 0.1%, while S&P 500 and Nasdaq 100 futures dropped 0.2%.
Economists polled by Dow Jones anticipate a 0.1% monthly increase in the CPI and a 2.3% rise over the last 12 months. This data will inform the Federal Reserve's decision-making at its upcoming November meeting.
Premarket Movers:
| Company | Ticker | Change | Reason |
|---|---|---|---|
| Tesla | TSLA | +1.1% | Ahead of Robotaxi Day, signaling growth in autonomous and AI technologies |
| Apple | AAPL | -0.5% | Weak demand for iPhone 16, with expected double-digit volume drop |
| Boeing | BA | +0.2% | Rebound after a prior 3% drop, but equity raise concerns linger |
| Domino’s Pizza | DPZ | -1.3% | Lower-than-expected Q3 U.S. same-store sales growth |
| GXO Logistics | GXO | +8.1% | Possible sale after takeover interest reported |
| Medtronic | MDT | +1.1% | Upgrade by RBC Capital due to improved business fundamentals |
| Lululemon Athletica | LULU | -0.2% | Inventory challenges ahead of the holiday season |
| CVS Health | CVS | +1.3% | Upgrade by Barclays, citing expected Medicare margin recovery |
| PayPal | PYPL | -1.6% | Downgrade by Bernstein due to rising valuation concerns |
| PepsiCo | PEP | -0.5% | Downgrade by TD Cowen, citing near-term pricing power risks |
Recent meeting minutes from the Federal Reserve reveal internal divisions over a recent half-point rate cut. The central bank is balancing inflation concerns with labor market challenges. While some members supported a smaller rate reduction, the half-point cut passed with only one dissenting vote from Governor Michelle Bowman. This was the first time since 2005 that a governor opposed a rate vote.
A stronger-than-expected jobs report in September has reinforced the view that the Federal Reserve is likely at the beginning of a rate-cutting cycle. However, future cuts may not be as aggressive as some initially thought.
Nike’s Stock Gains on Truist Upgrade
Nike (NYSE:NKE) shares rose 1.5% after a Truist analyst upgraded the company from "hold" to "buy."
The firm expressed confidence in Nike's long-term recovery, pointing to increased marketing efforts and improved wholesale relationships under the company's new management.
While the path to full recovery may take time, these near-term moves should boost investor confidence and position the athletic apparel giant for better performance in the future.
Delta Forecasts Q4 Growth Amid Strong Holiday Travel
Delta Air Lines (NYSE:DAL) expects robust fourth-quarter earnings of $1.60 to $1.85 per share, driven by strong holiday bookings. This surpasses last year’s $1.28 per share, though slightly below analysts' estimates. Despite this, Delta shares fell over 5% in premarket trading.
Delta anticipates a 2-4% rise in revenue but expects a 1-point dip due to the U.S. election’s impact on demand. CEO Ed Bastian noted consumers often pause travel around elections.
In Q3, Delta earned $1.50 per share, impacted by a July cyberattack that cost $380 million. Despite this, net income rose 15% to $1.27 billion. Delta remains optimistic for the final quarter and into 2025.
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Alex Vellor
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