Wall Street up after the release of US inflation for September, measured by the consumer price index.
The Dow Jones advanced 0.12% to 34,420 points, the Nasdaq rose 0.48% to 14,534 points, the S&P 500 was + 0.24% to 4,362 points.
The consumer price index rose by 5.4% on an annual basis, slightly above the 5.3% increase estimated by the consensus. Excluding the more volatile components represented by energy prices and food prices, core inflation rose by 4%, as expected.
On a monthly basis, the rise in inflation was + 0.4%, above the + 0.3% forecast, and + 0.3%, also, of the previous month. The core component on a monthly basis increased by 0.2%, as expected, up from the increase of 0.1% in August.
Pay attention to some components of the consumer price index, primarily gasoline prices, which grew by 1.2% in September, bringing the increase on an annual basis to + 42.1%.
Fuel flew 3.9% on a monthly basis, and 42.6% on an annual basis.
The prices of food products also jumped, up by 1.2%. The prices of used cars, on the other hand, which were also responsible, in previous months, for much of the increase in inflationary pressures, fell by 0.7%, reducing the rise on an annual basis to + 24.4%. .
Shortly after the release of the data, rates on US Treasuries, with 10-year rates at 1.561%.
Supporting market sentiment are JP Morgan’s quarterly financial results despite the fear of inflation.
JP Morgan Chase, the first major US bank to report third-quarter earnings, beat expectations by churning out $ 9.6 billion in earnings with EPS of $ 3.03. Considering the release of the net reserve of $ 2.1 billion and 566 million in tax breaks, the eps rose to $ 3.74 per share against the $ 3 per share estimated by analysts (consensus Refinitiv). Revenue increased 1% to $ 29.65 billion in the quarter. The stock is up.
However, a basic caution remains, which is explained by doubts about what the Federal Reserve will do in its November meeting.
In this regard, in an interview with Cnbc, James Bullard, president of the Federal Reserve in St. Louis, who has always been one of the most hawkish exponents of the US central bank, presented his own monetary policy recipe: start tapering in November; end of tapering in the first quarter of 2022; first hike in fed funds rates in the spring or summer of 2022.
Just yesterday, a warning to central banks came from the International Monetary Fund which, in its October World Economic Outlook, called on institutions like the Fed to prepare to launch monetary tightenings if inflation gets too high.
That said, US Treasury Secretary Janet Yellen reiterated that she believes the flare-up of inflation has a transitory character, while at the same time putting her hands on:
“I think (inflation) is transient, but by that I don’t mean that these pressures will go away next month or two months from now.”
Among the special Apple stocks, down after Bloomberg indiscretions, that the Cupertino giant will be forced to cut its iPhone 13 production target, previously set for 2021 to 90 million units, due to delays in shipments of components by Texas Instruments and Broadcom. The cut could reduce the original production target by 10 million units.