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Investing.com — The S&P 500 fell Thursday after giving up gains amid pressure from rising Treasury yields after inflation came in hotter than expected in September and the job market continues to show strength, weighing on hopes that the Federal Reserve was done with rate hikes.
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Inflation on the up and up, again; labor market strength continues
The is expected to have rose to 0.4% in September, taking the annual rate to 3.7%, slightly above expectations for a 0.3% and 3.6% rise respectively.
The core measure, which excludes food and energy and is more closely watched by the Fed, remained steady at a 0.3%, but the “pace of improvement remains “uncomfortably slow,” Stifel said in a note.
The labor market, meanwhile, continued to surprise to upside as the were short of the expectations.
“The claims data do not show any real evidence of a pickup in layoff activity,” Jefferies said in a note.
Still, the odds for rate hike next month remain low at 12%, according to Investing.com’s Fed Rate Monitor Tool.
Treasury yields resumed their advance, with the yield on the Treasury rising above 5%.
Delta Air Lines flies in better-than-expected Q3 earnings, but cuts annual revenue outlook
Delta Air Lines Inc (NYSE:) reported third-quarter results that topped analysts estimates, but airline cut its full-year revenue outlook, sending its shares more than 2% lower.
For the full year, Delta Air Lines said it expects $6.00 to $6.25 in EPS, down from a prior estimate for EPS of $6 to $7. The company attributed the weaker guidance to a rise in fuel costs.
Ford reverse after UAW unexpectedly expands strikes; Stellantis in spotlight
Ford fell 2% as the automaker is set to see further disruptions at its plants after United Auto Workers Union called a surprise strike at Ford’s most profitable plant in Kentucky on Wednesday.
Stellantis (NYSE:), which was down 2%, will hope to avert further strikes at its plants as it held talks with UAW.
“Here’s to hoping talks at Stellantis today are more productive than Ford (NYSE:) yesterday,” UAW President Shawn Fain said.
Birkenstock continues to fall following disappointing stock market debut
Birkenstock Holding (NYSE:) fell 5.7%, adding to the 12% slump on Wednesday, when the German sandal maker made an underwhelming public market debut, ending the day below its $46 initial public offering price.
{{0|Disney, Comcast (NASDAQ:) get sale process of Hulu underway}}
Walt Disney (NYSE:) and Comcast have hired investment banks Morgan Stanley and JPMorgan, respectively, to value streaming site Hulu as the Nov. 1 deadline that will force Disney to buy the remaining 33% stake in Hulu from Comcast.
In 2019, Disney and Comcast stuck a “put/call” agreement under which either company could trigger a sale or purchase of Comcast’s 33% stake in Hulu. The deal also set a guaranteed sale price of $27.5 billion for Comcast’s stake.
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