Dow pops 1,200 points, S&P 500 jumps 5% in biggest rally in two years after light inflation report

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Stocks mount their biggest one-day rally since 2020

Stocks mounted their biggest rally since 2020 after a weaker than expected inflation report buoyed investor hopes that inflation has peaked.

The Dow Jones Industrial Average jumped more than 1200 points, or 3.7%, in its best day since May 2020. The S&P 500 jumped 5.54%, in its biggest one-day rally since April 2020. The Nasdaq Composite surged 7.35%, its best since March 2020.

— Sarah Min

Average 30-year mortgage rate tumbled 60 basis points to 6.62%

Another data point for the equity market to like: The average rate on a 30-year fixed-rate mortgage plunged 60 basis points to 6.62% from 7.22% yesterday, Mortgage News Daily said. (A basis point is 0.01%, or one one-hundredth of a percent.)

That matches the record drop at the start of the Covid 19 pandemic, although the rate is still more than double what it was at the start of 2022.

“This is the best argument to date that rates are done rising, but confirmation requires next month’s CPI to tell the same story,” said Matthew Graham, chief operating officer of Mortgage News Daily. But Graham said rates are not out of the woods. They are unlikely to move dramatically lower, as there is still plenty of economic uncertainty in the U.S. and overseas.

— Scott Schnipper, Diana Olick

Commodities rally with stock market

Commodities rallied along with the stock market Thursday.

Brent crude rose gained 0.9%. The U.S. West Texas Intermediate‘s crude followed at 0.6% up.

Metals were up multiple percentage points.

The big winners were palladium and platinum, up 5.7% and 5.6%, respectively.

Spot gold added 2.8%, while U.S. gold futures gained 2.5%.

Silver was up 3.1%.

— Alex Harring

Stocks at session highs into final hour of trading

Stocks were at session highs heading into the final hour of trading Thursday.

The Dow Jones Industrial Average surged 1,093 points, or 3.4%, in its biggest one-day rally since 2020. The S&P 500 jumped 4.9%. The Nasdaq Composite surged 6.4%.

Every sector in the S&P 500 was higher, with information technology, real estate and consumer discretionary outperforming. They were up 7.1%, 6.7% and 6.7%, respectively.

Some of the stocks hardest hit this year by surging inflation and rising interest rates rallied on Thursday. Shares of Carvana were up 29%, even with the stock down more than 95% this year. Shares of Yeti was 30% higher. Wayfair advanced 27%.

Treasury yields plunged, with the 10-year yield down nearly 31 basis points to 3.833%.

— Sarah Min

Wolfe Research downgrades GM

General Motors got a downgrade from Wolfe Research, citing headwinds to OEM profitability.

“Until now, GM has been a massive beneficiary of the industry’s tight supply/demand,” analyst Rod Lache said in a note. “But a significant negative turn now seems inevitable: Used vehicle trade-in values are down 15% YTD and are likely to decline further; Auto Loan rates are up about 150 bps YTD (to around ~6%) and are likely to rise by another 200 bps in the near term, and inventory has slowly started to build as production has improved faster than sales.”

— Fred Imbert, Michael Bloom

Wolfe Research says stock rally may continue, but don’t expect the Fed to pivot

Stocks may continue to rise after October’s CPI report came in weaker than expected, but don’t expect the Federal Reserve to reverse course anytime soon, according to Wolfe Research.

“We wouldn’t be surprised to see some near-term follow through on this morning’s very strong rally, including the S&P 500 trading up toward its 200-day moving average into the 4050-4100 range,” Chris Senyek wrote in a Thursday note.

“However, this morning’s report does not make us change our views that the FOMC will ultimately hike the fed funds rate to between 5%-6% and that a demand-driven recession will hit next year,” he added.

— Sarah Min

Dan Niles says he’s “playing this rally” until the next CPI print

Satori Fund’s Dan Niles said he’s bullish on markets at least until the next consumer inflation reading in December.

“We’re still playing this for a rally at least until sort of that December 13th next CPI print. And this could be a huge one, because you got to remember the biggest bear market rallies happen toward the end of bear markets,” Niles said Thursday on CNBC’s “TechCheck.”

The major averages rallied after a cooler than expected October CPI print raised investor hopes that inflation is cooling. The Dow Jones Industrial Average was up more than 1000 points at one point in the day. Niles said he’s “having one of the best days of the year,” and expects the rally will continue.

“We’re pretty bullish between now and at least December 13th,” he said.

— Sarah Min

Stocks making the biggest moves midday

Check out the stocks making the biggest moves in midday trading:

  • Fair Isaac – The analytics company soared 27% after it posted better-than-expected earnings for its fiscal fourth quarter.
  • Rivian – Shares jumped 18% after the electric vehicle maker reported a smaller-than-expected quarterly loss. It also said production would remain on track despite supply chain hiccups.
  • Vacasa – Shares of the vacation booking platform plummeted 40% on the back of disappointing third-quarter earnings. The company’s fourth-quarter revenue guidance also came in below expectations.

See the full list here.

— Alex Harring

Wedbush removes Tesla from top stock list after Elon Musk takes reins at Twitter

Tesla is no longer a top investment idea to Wedbush – and blame can be placed on its owner.

Analyst Dan Ives said the electric vehicle maker still has a strong story, but Elon Musk has hurt its reputation with his acquisition of Twitter, which he called the “Twitter train wreck disaster.”

“More worrying is that this Twitter ‘Money Pit’ situation will never end and continue to take up money, time, and attention from Musk instead that could be focused on Tesla,” Ives said.

Musk’s deal closed late last month after months of highly followed discussion, during which he tried to pull out of the deal. Under his leadership, about half laid off about half of Twitter’s staff was laid off, though some were reportedly asked to return shortly after.

CNBC Pro subscribers can read more about Ives’ decision here.

— Alex Harring

“Inflation is much lower than the Fed thinks,” Wharton’s Jeremy Siegel says

“Inflation is much lower than the Fed thinks,” Jeremy Siegel, professor of finance at the Wharton School of the University of Pennsylvania, told CNBC’s Scott Wapner on Fast Money: Halftime Report.

“If you put the actual home and rental price index, not the one the Fed uses, which is very lagged, but the actual one in today’s index, you get negative core inflation. Negative core inflation,” Siegel said.

The core inflation rate in October for shelter and housing was reported early Thursday as climbing 0.8% from September, the biggest one-month move since 1990.

“I mean, that’s ridiculous. It’s no where near that,” Siegel said. “No way. By the way, that’s the only reason why [the overall] core was positive. Not only is it zero, it’s actually negative. So if you put a negative number in, we’re in negative inflation mode, if the Fed uses the right statistics, not the faulty statistics that they’ve been using.”

That said, Siegel accepts that the central bank will probably lift its overnight fed funds rate another half a percentage point when policymakers next meet in December, and then pause. But that’s unnecessary, the author of 1994’s Stocks for the Long Run, said.

“Yeah, they’ll probably go now 50 [basis points] and then stop, but they don’t even need to do that because everything is in a down mode,” Siegel said. A basis point is 1/100th of a percent. “I told you last June I thought the danger was the Fed was getting too tight, and now the data is showing that now yeah maybe that’s true.”

“I think they’ll go to 50 and announce a pause…and that’s why we have a 1000-point rally today” in the Dow Jones Industrial Average.

Siegel said that if the next month’s weekly jobless claims, November employment and November consumer price index “comes in weaker…that could put pressure on [the Fed] going even less.”

The housing component of the consumer price index will still expand by 0.7% to 0.8% on a month-over month basis in November when the CPI is announced the day before the Fed’s December meeting, and housing is 40% of the index, Siegel said. “It will continue to push up as the housing market goes down.”

“When should [the Fed] pivot? Yesterday.”

Siegel said the implication for stocks is “the potential for a significant end of the year rally.” Siegel thinks the market can rally without tech stocks leading the way.

Tech is leading Thursday, but value has beaten growth all year, and “that trend that we have seen all year will re-assert itself.”

“Inflation is basically over and the Fed doesn’t have to get anywhere near as high” in its terminal, or end, fed funds rate as investors had feared, Siegel said. “There is still a chance we can avoid a hard landing,” he added. Fed chair Jerome Powell “is going to change his tune.”

— Scott Schnipper

Coffee chain Dutch Bros earnings show its on track this year and long-term, BofA says

Coffee chain Dutch Bros is a buy at its current price, according to analysts at Bank of America.

And, the company’s recent earnings results show it’s poised to continue to perform solidly in the near and long-term. The stock is up 16% on its positive earnings report.

The company improved performance across stores in the third quarter and is only seeing a 1% labor inflation rate, below others in the industry.

This is a “testament to the attractiveness of the company as an employer and under-appreciated benefit of the high tip model, where effective wages increase apace with checks,” wrote analyst Sara Senatore in the Thursday note. “With new stores ramping toward margin efficiency as expected we see an imminent return to historical margin profile.”

Dutch Bros small and flexible nature has helped its sales thrive even in locations that are not idea, according to the note.

“With the benefit of improved site selection and modeling, new stores on average are located in higher income trade areas with more revenue potential, thus likely to benefit more heavily from BROS’ infill strategy where additional stores redistribute demand in busy markets,” said Senatore.

The bank reiterated its buy rating on the company and its $53 price target, which implies more than 80% upside.

—Carmen Reinicke

Inflation still a big risk despite latest CPI data, Fed’s Mester says

Cleveland Fed President Loretta Mester said in a speech Thursday, while she welcomes the latest CPI data, there’s more work left do to fully tame the inflationary pressure the U.S. economy faces.

“Given the current level of inflation, its broad-based nature, and its persistence, I believe monetary policy will need to become more restrictive and remain restrictive for a while in order to put inflation on a sustainable downward path to 2%,” Mester said in a speech, according to Reuters.

“This morning’s October CPI report also suggests some easing in overall and core inflation,” she said. However, she added that “there continue to be some upside risks to the inflation forecast.”

— Fred Imbert

Cathie Wood’s ARKK on track for best day ever

Cathie Wood’s flagship ARK Innovation ETF staged a dramatic relief rally Thursday on the back of an easing inflation reading. The fund jumped more than 13% to hit an intraday high of $37.02, on pace to post its biggest daily pop since its inception in 2014.

Unity, Invitae and Pacific Biosciences all traded up over 20% so far Thursday. ARKK’s biggest holding Zoom Video popped about 12%, while Tesla jumped nearly 7%. Roku advanced more than 11%. Teladoc climbed 12%. 

Wood’s disruptive darlings have been hurt particularly hard this year as rising rates made growth names unappealing. These stocks could see a big rebound if easing price pressures lead the Federal Reserve to dial back its aggressive tightening efforts.

— Yun Li

Dollar index on pace for worst day since Dec. 2015

The U.S. dollar slid Thursday against a basket of other currencies as investors cheered October’s CPI report coming in weaker than expected, signaling that inflation may have peaked.

The dollar index shed 2%, putting it on pace for its worst daily performance since Dec. 4, 2015. If the index falls more than 2.1%, it will hit levels not seen since 2009.

This week, the dollar index is down 2.3% and is on pace for its worst week since March 2020.

—Carmen Reinicke

Consumer discretionary, real estate outperform in the S&P 500

All sectors in the S&P 500 were trading in positive territory around noon, with the consumer discretionary, real estate and information technology sectors leading the pack. The sectors were up 7.8%, 7.3% and 6.6%, respectively. An easing in the latest consumer inflation data buoyed risk sentiment in markets.

Meanwhile, more defensive sectors such as consumer staples and health care, which have outperformed this year, lagged the broader market.

Consumer discretionary was boosted by gains in home builders and cruise lines, among other stocks. Cruise lines such as Royal Caribbean Group, Norwegian Gruise Line Holdings jumped 10% and 9.3%, respectively. Home builders such as PulteGroup was up nearly 14%. D.R. Horton was 11.8% higher.

— Sarah Min

Home builders leading the gains

Home builders surged during Thursday’s relief rally on hopes that construction activity could pick up in light of easing prices. The iShares Home Construction (ITB) jumped 12%, on pace for best day since April 2020. Nearly two thirds of the ETF components were up more than 10% Thursday.

PulteGroup and Lennar climbed 14% each, leading the gains in the S&P 500. On the week, ITB is up over 12.2%, on pace for the best week since May 2020.

— Yun Li

13 fresh highs in the S&P 500 including McDonald’s

There were 13 new 52-week highs in the S&P 500 Thursday. McDonald’s was the sole Dow component included in the list, and was trading at all-time highs going back to its IPO in April 1965 — before going negative on the session.

  • Aflac (AFL) trading at all-time high levels back to its IPO in June, 1974 as American Family Life Assurance Company of Columbus
  • Arch Capital (ACGL) trading at all-time high levels back to when it was listed on the NASDAQ in 2000
  • Progressive (PGR) trading at all-time highs back to its IPO in 1971
  • Principal Financial (PFG) trading at all-time high levels back to its IPO in Oct, 2001
  • Raymond James Financial (RJF) trading at all-time high levels back to its IPO in Jul, 1983
  • McDonald’s (MCD) trading at all-time highs back to its IPO in April, 1965 but now negative on session
  • O’Reilly Auto (ORLY) trading at all-time high levels back to its IPO in Apr, 1993
  • General Parts Company (GPC) trading at all-time high levels back to its IPO in 1948
  • PACCAR (PCAR) trading at levels not seen since Jan 2021
  • CoStar Group (CSGP) trading at levels not seen since Nov 2021
  • PTC (PTC) trading at levels not seen since Nov 2021
  • Albemarle (ALB) trading at all-time high levels back to its spin-off from Ethyl Corp in 1994
  • WW Grainger (GWW) trading at all-time high levels back to when it began trading in 1967

— Sarah Min

Coinbase well-positioned to withstand volatility within crypto market, Oppenheimer says

The crypto market has felt the ripple effects of Binance walking away from its deal with FTX. But Coinbase is still well-positioned to grow, according to Oppenheimer analyst Owen Lau.

Lau lowered the price target amid the volatility but kept the stock at overweight. It’s new price target shows an upside of 93.6%.

“While we lower our PT, it is mainly driven by the challenge facing the industry,” he said in a note to clients. “Indeed, we need more crypto companies using COIN’s compliant and transparent model.”

CNBC Pro subscribers can read the full story here.

— Alex Harring

T. Rowe Price, SVB shares up 14%

Shares of T. Rowe Price and SVB Financial Group jumped roughly 14% during morning trading Thursday, outperforming the S&P 500, as well as other financial stocks.

The S&P 500 was up 4.3%, while the finance sector was 3.9% higher, as of 11:20 a.m. ET.

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— Sarah Min

`Doctor Copper’ nears 3-month high, on track for 4th weekly gain in 5 weeks

Doctor Copper’s” (she’s got a Ph.D. in economics!) December futures contracts were gaining 2% in early Thursday trading to the highest since late August and on pace for the 4th weekly advance in 5 weeks.

Global X Copper Miners ETF (COPX) is almost 6% higher on the day.

Among precious metals, December gold climbed to $1740, the highest since mid-September. December silver jumped to the highest since late June.

The VanEck Gold Miners ETF (GDX) is 6.4% higher Thursday, on pace for the 4th up day in 5, while the
Global X Silver Miners ETF is ahead 5.3%, also on pace for its 4th gain in 5 days.

In the energy complex, West Texas Intermediate crude oil is lower by about 8% week-to-date, on pace for its biggest weekly decline since early August. December RBOB gasoline is off by more than 6% so far this week, the most since early September.

— Scott Schnipper, Gina Francolla

Crypto sell-off pauses as investors digest CPI data, FTX crisis

Cryptocurrencies climbed Thursday as the market took a pause from its two-day sell-off and investors digest key inflation data and the latest updates in the ongoing FTX saga.

Bitcoin rose 5% to $17,351.10, while ether advanced 9% to $1,281.04, according to Coin Metrics. On Wednesday they posted two-day losses of about 24% and 32%, respectively.

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Solana, which has been hit hard by the FTX scandal, climbed 24% after losing more than 70% this week.

Even FTT, the FTX token at the center of the exchange’s troubles, jumped 12%. It dropped about 140% earlier this week.

— Tanaya Macheel

Don’t forget consumer inflation expectations need to ease as well, strategist says

Consumer expectations around inflation will have to come down as well to convince the Federal Reserve that it’s squashed rising prices, according to LPL Financial.

Investors should keep an eye on Friday’s University of Michigan’s Consumer Sentiment Survey, which includes five- to 10-year consumer inflation expectations, which has risen to an “uncomfortable” level, according to chief global strategist Quincy Krosby.

“For the Fed — and markets– to be convinced that inflationary pressures are easing at an acceptable and durable pace, consumer expectations need to ease as well,” Krosby wrote.

— Sarah Min

Amazon and other mega-cap tech stocks outperform

Amazon and other mega-cap tech stocks spiked following the lighter-than-expected CPI report Thursday morning, as growth stocks that are more sensitive to rising interest rates and inflation outperformed.

Shares of Amazon were up 10%, as of 10:30 a.m ET. Apple, Meta and Microsoft were each up more than 6%. Shares of Meta were up 5.4%, even as it is down more than 55% this year.

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— Sarah Min

Cloud ETF jumps 13%, on pace to biggest-ever, 1-day gain since it was launched

WisdomTree Cloud Computing ETF (WCLD) is up as much as 13% Thursday, on pace for best day ever, going back to its inception in Sept. 2019.

More than half the stocks in the WCLD ETF are up 10% or more so far, including RingCentral, Wix.com, Sprout Social, Cloudflare, Elastic and Coupa.

— Scott Schnipper, Gina Francolla

Meta layoffs ‘a potential welcome shift,’ Bank of America says

Bank of America analyst Justin Post said Meta’s announcement of about 11,000 employee layoffs could be a “potential welcome shift” for the stock and others in the so-called FANG group.

We are encouraged to see Meta rationalizing its cost base, which seemed large even for attractive market conditions,” wrote Post, who rates Meta as neutral. “We see similar investor cost frustration at Alphabet and Amazon, and see opportunities to shrink their respective cost bases below Street ests in 2023.”

The analyst also lowered his Meta revenue forecast, but raised his 2023 earnings per share forecast by 11% to $8.39 from $7.55.

— Fred Imbert, Michael Bloom

Still a long way to go before inflation normalizes, strategist says

Even as the CPI report showed signs of a slowdown, prices still remain elevated and have a long way to go before normalizing, according to Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office.

“Inflation slowing to its lowest annual rate since January is news that both the Fed and investors can get behind,” Lowengart said. “The Fed was adamant that it won’t hit the brakes on rate hikes until inflation slows, and while the market’s rally indicates investors may see light at the end of the tunnel, it will get one more reading before its decision next month”

— Yun Li

Dow opens higher after CPI report

Stocks surged Thursday after October’s reading of consumer prices raised hopes that inflation has peaked.

The Dow Jones Industrial Average jumped 684 points, or 2.1%. The S&P 500 jumped 3.3%, while the Nasdaq Composite surged more than 4.5%.

— Sarah Min

Traders bet Fed can be slightly less aggressive after better-than-expected inflation report

Traders bet the Federal Reserve can be slightly less aggressive with rate hikes, now that it appears inflation could be peaking after October consumer inflation was slightly cooler-than-expected.

In the futures market, the terminal rate, or end point for Fed rate hikes, fell to 4.88% just after the 8:30 a.m. ET release of the consumer price index, according to BMO. It had been priced at 5.07% just before the report. The CPI showed core inflation rising at a pace of 0.3%, versus estimates for 0.5%.

“Now the question is what we hear from the Fed. That will determine how far the rally can extend. A single data point is not enough to make that assertion entirely, but it adds to that case [for peak inflation],” said Ben Jeffery at BMO. The 10-year yield has slid to 3.92%. Jeffery noted it held the key 3.89% level, and the next target on downside would be 3.75%.

Patti Domm

VIX falls to lowest level in almost 2 months

A measure of fear in stocks just fell to the lowest level in almost two months after the inflation report showed signs of peak price pressures.

The Cboe Volatility Index, known as the VIX, dropped 2.4 points to 23.7, hitting the lowest level since September.  The VIX, which tracks the 30-day implied volatility of the S&P 500, had traded above the 30 threshold for the most of October. The index looks at prices of options on the S&P 500 to track the level of fear on Wall Street.

— Yun Li

S&P 500 has likely bottomed if inflation peaks, Clocktower Group strategists say

If the consumer price index truly did peak, that could mean good news for the stock market, according to Clocktower Group.

October’s CPI data showed inflation did not rise year over year for a fourth month.

It was up 7.7% compared with a year ago in October, which is down from 8.2% year-over-year growth seen in August and September and 8.5% seen in July. It last rose in June, when the year-over-year growth rate hit a high of 9%.

Clocktower found since 1934, the S&P 500 typically rises as CPI comes off a peak. Strategists at the firm said they believe the market’s bottom is in, but still urged investing with caution.

When predicting the CPI would not rise, the firm pointed to the National Federation of Independent Business survey, which it said is typically a good predictor, showing “absolute destruction” of business confidence.

— Michelle Fox, Alex Harring

Dollar falls more than 1%

The dollar index fell almost 1.2%, in reaction to the lighter-than-expected CPI report. The greenback is now on pace for the fourth negative day in five.

The index is down 1.5% week to date, on track for the biggest weekly decline since early February.

— Yun Li

Jobless claims higher than prior week, estimates

Unemployment claims increased week over week and were high than expected.

There were 225,000 seasonally adjusted jobless claims for the week ending Nov. 5. That level marks a 3.2% increase from the prior week’s 218,000 and came in higher than expectations of 220,000.

Jobless claims for the week also come in higher than the four-week moving average of 218,750.

— Alex Harring

CPI rises less than expected

The U.S. consumer price index — a broad measure of inflation — rose by 0.4% in October from a month ago. On a year-over-year basis, the CPI rose 7.7%.

Economists polled by Dow Jones expected a month-over-month gain of 0.6% and a year-over-year advance of 7.9%.

Excluding volatile food and energy costs, so-called core CPI increased 0.3% for the month and 6.3% on an annual basis, compared to respective estimates of 0.5% and 6.5%.

— Jeff Cox

It’s ‘ironic’ that bitcoin made an all-time closing high one year ago, BTIG says

Bitcoin has “come full circle” after falling to a new bear market low Wednesday exactly one year after posting an all-time closing high, according to BTIG’s Jonathan Krinsky.

“It’s somewhat ironic that BTC made its all-time closing high exactly one year ago on November 9, 2021 at 67,734.,” Krinsky wrote in a Wednesday note.

Bitcoin fell to its lowest point in nearly two years Wednesday after Binance scuttled the FTX deal. According to Krinsky, the break below 17,500 “implies a measured move to the 11k-14k range.”

Still, “A few more days of consolidation here should set up for another potential move higher,” he wrote.

— Sarah Min

Stocks making the biggest moves premarket

Check out the companies making headlines before the bell:

  • WeWork (WE) – The office-sharing company’s stock fell 1.7% in the premarket after it reported a wider-than-expected quarterly loss. WeWork also plans to exit about 40 underperforming locations this month.
  • Six Flags (SIX) – The theme park operator’s stock initially dipped in premarket trading after it missed top and bottom line estimates for its latest quarter. However, it rebounded to a 2.9% gain after announcing an agreement with investment firm H Partners that raised the cap on H Partners’ stake in the company to 19.9% from 14.9%.
  • Rivian (RIVN) – Rivian rallied 8.2% in off-hours trading after the electric vehicle maker reported a narrower-than-expected quarterly loss and kept its production schedule intact, even in the face of supply chain issues.

Read the full list here.

— Peter Schacknow

Nio shares pop after earnings

Shares of Nio jumped more than 5% in Thursday premarket trading after the Chinese electric vehicle maker reported a surge in revenue in its third quarter, and projected strong production heading into the year-end.

Otherwise, Nio reported a loss of $577.9 million in its most recent quarter.

Here are the key numbers.

  • Revenue: $1.83 billion, up 32.6% from the third quarter of 2021.
  • Adjusted loss per share: 30 cents, versus 6 cents per share in the year-ago period.
  • Cash at quarter end: $7.2 billion, down from $8.1 billion as of June 30.

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— Sarah Min, John Rosevear

Coinbase and other crypto-linked stocks tick higher after Wednesday’s rout

Shares of Coinbase, MicroStrategy and Robinhood rose slightly in the premarket Thursday, putting the crypto-related names on track to regain some of their steep losses from the previous session.

Coinbase traded 1.6% higher, while MicroStrategy advanced 3.3%. Robinhood, meanwhile, gained 1.6%.

The latest moves came after Binance backed out of a deal to acquire crypto exchange FTX. A day earlier, Coinbase lost 9.5%, while Robinhood slid 13.8%. MicroStrategy dropped nearly 20%.

— Fred Imbert

What economists expect from Thursday’s U.S. data releases

The U.S. government is slated to report the latest unemployment claims and inflation numbers at 8:30 a.m. ET. Here’s what economists polled by Dow Jones expect:

  • October consumer price index: Expected to gain 0.6% month over month and 7.9% year over year. While the month-over-month change would be an uptick from September’s 0.4% increase, the year-over-year change would be down from 8.2%.
  • Jobless claims for week ending Nov. 5: Expected to tick up by 3,000 to 220,000.

— Fred Imbert

European markets fall slightly as investors track U.S. midterm results, inflation data

European markets were slightly lower on Thursday as investors around the world digested incoming results from the U.S. midterm elections and looked ahead to key inflation data.

The pan-European Stoxx 600 was down 0.2% in early trade, with retail stocks shedding 1.6% to lead losses while utilities added 1.1%.

– Elliot Smith

Crypto is the ‘wild Wild West’ with 99% noise and confusion, Fed’s Kashkari says

Neel Kashkari, who once called bitcoin an “utterly useless” currency, is at it again.

Late Wednesday, the Minneapolis Fed president slammed cryptocurrencies, calling it the “wild Wild West and chaos all rolled into one.”

Speaking at an event at South Dakota State University, Kashkari said the “fatal flaw” in the virtual asset is that anyone can create those coins and it makes them “hard to distinguish.”

“For several years I’ve been saying it’s 95% noise hype and confusion and I think that 95% might be generous — it might be 99% noise, hype and confusion based on what’s going on right now,” he said, adding that he has yet to see anything useful coming from cryptos.

–Jihye Lee

Major cryptos fall after Binance backs out of deal to buy FTX

Major cryptocurrencies bitcoin and ether fell in early Asia trade on Thursday after Binance backed out of a deal to acquire FTX.

Bitcoin was down nearly 10% to trade at $16,411.65, while ether fell 10.33% to $1,167.95, at 10.22p.m. ET Wednesday, according to CoinDesk data.

Binance on Wednesday pulled out of plans to buy its rival FTX, leaving the embattled crypto exchange on the brink of collapse.

— Lee Ying Shan

Barclays, Citi become latest banks to cut staff as revenues slide

Barclays and Citigroup were the latest banks to reduce headcount as Wall Street feels the impacts of sliding revenue.

Barclays dropped around 200 positions within banking and trading, according to a source familiar.

Citigroup cut about 50 trading personnel, according to people with knowledge of the moves. It follows a decision reported by Bloomberg to cut dozens of banking roles.

The banks follow the lead of Goldman Sachs, which laid off hundreds of employees in September. They also mark what some see as the banking industry’s return to ritual cutting of underperforming employees that was once ubiquitous.

— Hugh Son, Alex Harring

What to expect from Thursday’s CPI data

Economists expect the consumer price index to rise 0.6% from September when it is released Thursday at 8:30 a.m.

That would mark a jump from 7.9% compared with the same month a year ago, according to Dow Jones.

It would also show chilled growth from September, when the CPI saw a year-over-year gain of 8.2% and a month-over-month gain of 0.4%.

Excluding food and energy, the CPI is expected to rise 0.5% over the prior month and 6.5% year over year. That would be slower than the 0.6% gain with the exclusions in September and the 6.6% seen a year ago.

The index is considered a key report by the Federal Reserve.

Read the full story on what to expect here.

— Patti Domm, Alex Harring

Stocks making the biggest moves after hours

These are the stocks making the biggest moves in post-market trading:

  • Bumble – The dating app company plummeted 15% after it reported third-quarter revenue that was below Wall Street’s expectations, according to StreetAccount. It said fourth-quarter revenue and adjusted earnings before interest, taxes, depreciation, and amortization would likely come in under expectations due to headwinds from foreign currency and the war between Russia and Ukraine. 
  • ZipRecruiter – The stock popped nearly 15% after the job marketplace beat StreetAccount’s estimates for third-quarter per-share earnings and revenue. The company also raised its full-year guidance and said its board has authorized a $200 million increase to its share repurchasing program.

See the full list here.

— Alex Harring

Futures open flat

Stock futures opened flat Wednesday night.

Futures connected to the Dow were up 23 points, or 0.1%.

S&P 500 and Nasdaq 100 futures added 0.1% and 0.2%, respectively.

— Alex Harring