The CPI and Stock Markets

By Staff Reporters

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The consumer price index (CPI), the inflation report we dislike every month, dropped today and showed that price growth cooled off a bit in October (but is still far higher than where the FOMC wants it).

The Consumer Price Index (CPI) for October reflected a 7.7% increase over last year and 0.4% increase over the prior month, better than Wall Street expected. Economists surveyed by Bloomberg called for a 7.9% annual rise and 0.5% monthly gain.

The S&P 500 (^GSPC) rallied 5.5% — its biggest intraday gain since April 2020 — while the Dow Jones Industrial Average (^DJI) jumped 1,200 points, or 3.7%, the most since May 2020. The technology-heavy Nasdaq Composite (^IXIC) advanced a whopping 7.4%, its sharpest climb since emerging from the pandemic crash in March 2020. Meanwhile, Treasury yields tumbled following the report, with the benchmark 10-year note falling well below the 4% level.

Meanwhile, earnings season rolls on with reports from Disney, AMC, Palantir, Beyond Meat, and more.

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The Economy TODAY!

By Staff Reporters

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It’s a big day for anyone trying to read Jerome Powell today because the October consumer price index report gets released this morning.

Economists expect to see the annual inflation rate come in at 7.9%, so anything higher is likely to spark fear that the Fed could get even more aggressive with its rate hikes.

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PODCAST: Inflation Impact on Healthcare

By Eric Bricker MD

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CITE: https://www.r2library.com/Resource/Title/0826102549

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