US stock markets closed lower on Thursday after September inflation came in higher than expected. The data has increased concerns about another interest-rate hike by the Federal Reserve in October.
In the broader market, the S&P 500 index fell 1.11 percent to 7 718.94. The S&P 500 index traded within a range of -1.44 percent at the low and -0.21 percent at the high during the day.
Technology-heavy Nasdaq Composite fell 1.88 percent to 26 692.87. During the day, the index moved within a range of -2.21 percent at the low and -0.26 percent at the high.
By sector, healthcare performed best, up 2.44 percent, while IT was the weakest performer, down 2.62 percent.
Underlying CPI, core CPI, increased 2.6 percent year-over-year in September, compared with an expected 2.5 percent. In August, the annual rate was 2.5 percent. CPI rose 3.7 percent, versus expectations of 3.6 percent and 3.4 percent the previous month. The market now sees a probability of more than 50 percent that the Federal Reserve will raise interest rates in October.
Investment bank Morgan Stanley reported revenue of 20.34 billion dollars in the third quarter, compared with 18.22 billion dollars a year earlier and expectations of 19.93 billion dollars. Earnings per share rose to 3.03 dollars from 2.80 dollars, which was 2.7 percent better than expected. The stock fell 2.8 percent.
Banking giant Bank of America reported revenue of 29.96 billion dollars in the third quarter, compared with 29.04 billion dollars a year earlier and expectations of 30.58 billion dollars. Earnings per share fell to 0.91 dollars from 1.04 dollars, which was 17.3 percent worse than expected. Adjusted for fines of 1.2 billion dollars related to deficiencies in anti-money-laundering controls, earnings amounted to 1.08 dollars per share. The stock fell 4.8 percent.
Consulting firm Accenture presented new financial targets with mid-single-digit revenue growth in 2027 and 2028, followed by 5–9 percent in 2029, exceeding market expectations. The operating margin is expected to increase by 10–30 basis points annually. The stock rose 0.7 percent.
The yield on the US 10-year Treasury fell 3 basis points to 5.19 percent. This morning, the yield was quoted at 5.10 percent.
Brent crude rose 0.35 percent to 106.06 dollars and WTI crude increased 1.01 percent to 95.09 dollars. Brent is trading at 104.47 dollars today, while WTI is quoted at 94.14 dollars.
Gold futures fell 1.66 percent to 4 107.90 dollars. Gold is trading at 4 166.50 dollars today.
The dollar strengthened to 1.1160 against the euro, from 1.1201 the previous day. The dollar is trading at 1.1220 today. One dollar costs 9.9649 kronor today, compared with 10.0235 on the previous trading day.
IndexPriceChange todayChange this yearDJIA 3051 621,48-0,09%7,40%S&P 5007 718,94-1,11%12,76%Nasdaq Composite26 692,87-1,88%14,85%TSE (Toronto)35 584,46-1,11%12,21%Consumer Discretionary1 850,44-1,10%-4,04%Consumer Staples965,992,38%11,69%Energy1 040,440,80%51,37%Financials906,40-0,61%-0,57%Healthcare2 027,832,44%12,29%Industrials1 413,86-0,96%7,67%Materials630,29-0,44%9,73%Real Estate265,42-0,82%4,07%IT7 129,08-2,62%25,42%Utilities423,87-0,31%-2,29%Telecom473,40-1,73%4,65%Source: Factset
