Investing.com– U.S. stocks fell Thursday as investors digested the latest inflation data ahead of an eagerly-awaited speech by Federal Reserve Chair Jerome Powell.
At 12:57 ET (17:57 GMT), the fell 139 points, or 0.3%, while the index dropped 0.3% and the fell 0.3%.
Fresh signs of firmer inflation emerges
Data released earlier Thursday showed that US producer prices increased at a faster annual rate than anticipated in October, rising by 2.4% compared to a year ago, up from 1.9% in September and above economists’ estimates of 2.3%.
For the month, the measure came in at 0.2%, accelerating from an upwardly-adjusted 0.1% in September and in line with projections.
Excluding more volatile items like food and fuel, the reading came in at 0.3% month-on-month, in line with estimates. Year-over-year, the so-called “core” index moved up by 3.1%, compared to expectations of 3.0%.
This follows Wednesday’s consumer prices, as the headline rate rose slightly year-on-year, while remained pinned above 3%.
“The PPI report broadly backs up CPI in terms of a slowing in progress on underlying inflationary pressures. For now, though, the outlook for core PCE is soft enough to keep the Fed on track for another rate cut in December,” said Kyle Chapman, FX Markets Analyst at Ballinger Group.
Powell in focus
The fresh inflation data came ahead of ‘s speech slated for 3 p.m. ET. The Fed chief’s remarks will be closely watched for clues on whether Powell shares recent views from some Fed members, who have suggested the interest-rate cycle could be shallower than expected amid a higher a neutral rate.
“Fed officials are again thinking that the US’s equilibrium policy interest rate has risen, and Jay Powell may follow that line today,” Macquarie said in a note.
Traders continue to expect that the Fed will deliver another 25 basis point cut in December.
Disney ‘s streaming business shines in Q4, Cisco slips on tepid outlook
Walt Disney (NYSE:) stock jumped 7% after the entertainment giant reported better-than-anticipated income and revenue in the fourth quarter, bolstered in particular by strength at its key streaming business, which helped power a 14% jump in revenue.
Additionally, Cisco Systems (NASDAQ:) stock slipped 2% after the networking equipment manufacturer unveiled a tepid full-year outlook, while reporting a fourth straight quarter of declining revenue.
Advanced Micro Devices (NASDAQ:) stock traded just below the flatline after the chipmaker said it will lay off 4% of its global staff, or around 1,000 positions.
Elsewhere, Tapestry (NYSE:) stock rose 12% while Capri (NYSE:) cut losses to rise more than 4% after the two US-based luxury fashion houses called off their merger after the deal was blocked by the Federal Trade Commission.
