Consumer prices, jobless claims, Rivian shares and more: Thursday's 5 things to know
Investors will also be carefully watching data on the latest jobless claims and stock reaction to the latest results from Rivian and Bumble
Stock diversification is ‘key’ to making money in today’s market: Ryan Payne
Payne Capital Management president Ryan Payne and Belpointe chief strategist David Nelson preview October’s consumer price index on ‘Mornings with Maria.’
Here are the key events taking place on Thursday that could impact trading.
CONSUMER PRICES: The Bureau of Labor Statistics is expected to say the consumer price index jumped 0.6% month-over-month in October, up from 0.4% in September and the third month of accelerating growth.
On a year-over-year basis watch for prices climb 8.0% in October, easing back from September’s hotter-than-expected reading of 8.2%.
That would be the lowest reading since February, and the fourth month in a row of slowing annual growth after June’s 9.1% surge, which marked the highest inflation rate in almost 41 years.
OCTOBER INFLATION REPORT LIKELY TO SHOW CONSUMER PRICES INCREASED AGAIN
Woman selecting items while shopping. (iStock / iStock)
"The monthly CPI is a regular reminder that inflation is outstripping what is otherwise pretty stout growth in household income, further validating the sour financial mood of American consumers," said Greg McBride, CFA, Chief Financial Analyst for Bankrate. "Despite a half-dozen interest rate hikes by the Federal Reserve, any broad-based, significant, and sustained easing of inflation pressures remains elusive."
If you factor out volatile food and energy costs, the core consumer price index is anticipated to rise 0.5% in October, narrowly trailing a 0.6% spike the previous month. Annually, core CPI is forecast to climb 6.5% in October. That’s down slightly from a hotter-than-expected reading of 6.6% in September.
JOBLESS CLAIMS: The Labor Department will release the number of new jobless claims for last week, likely to show that the labor market remains tight. Expectations are for 220,000, up 3,000 from the previous week.
Labor Department reports jobless claims on Thursdays. (FBN)
Continuing claims, which track the total number of workers collecting unemployment benefits, are expected to decline for the first time in four weeks to 1.475 million, down slightly from a 7-month high of 1.485 million the prior week.
RIVIAN AUTOMOTIVE: Shares rose 8% in extended trading after the company said its adjusted net loss per share of $1.57 beat analysts’ expectations for a loss of $1.79 per share, according to Factset.
AMAZON'S RIVIAN ELECTRIC VANS NOW MAKING DELIVERIES IN 100 CITIES
Revenue was $536 million in the quarter ended September 30, compared with analysts' expectations of $551.6 million, according to Refinitiv data.
Amazon plans to buy 100,000 EDVs by 2030. (Amazon)
Supply chain snarls continue to limit the company's ability to produce electric vehicles that are in high demand.
Amazon, which is a major investor in Rivian, now has more than 1,000 Electric Delivery Vans (EDV) in operation in more than 100 U.S. cities.
BUMBLE RESULTS: Shares were 12% lower in extended trading after the dating firm forecast fourth-quarter revenue below market estimates as it grapples with a strong U.S. dollar, stiff competition and the effect of inflation on consumer spending.
The company expects current-quarter revenue between $232 million and $237 million, compared to Wall Street's estimates of $254.5 million, according to Refinitiv data.
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EARNINGS ON TAP: Ralph Lauren, Six Flags Entertainment, Tapestry, US Foods, UTZ Brands, Warby Parker and WeWork will all deliver results before the market open on Thursday.