US stock markets opened lower on Thursday after September inflation came in higher than expected. The data has increased concerns about another interest-rate hike from the Federal Reserve in October.
The broad S&P 500 index was down 0.6 percent at 7,762.25 at 15.48.
Technology-heavy Nasdaq Composite fell 0.8 percent to 26,998.00.
By sector, health care posted the strongest performance, up 1.88 percent, while financials recorded the weakest performance, down 1.27 percent.
Underlying CPI, core CPI, increased 2.6 percent year-over-year in September, compared with an expected 2.5 percent. In August, the year-over-year rate was 2.5 percent. CPI rose 3.7 percent, versus an expected 3.6 percent and 3.4 percent the previous month. The market now sees a more than 50 percent probability 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 last year and an expected 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 3.2 percent.
Banking giant Bank of America reported revenue of 29.96 billion dollars in the third quarter, compared with 29.04 billion dollars last year and an expected 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 8.6 percent.
Industrial supplier Fastenal Company increased revenue by 15.5 percent to 2.46 billion dollars in the third quarter, compared with an expected 2.44 billion dollars. Earnings per share rose to 0.35 dollars from 0.29 dollars, which was 2.9 percent better than expected. The stock fell 3 percent.
Streaming giant Netflix is cutting its workforce by 6 percent, equivalent to around 1,000 jobs globally, the Wall Street Journal reports. The stock was down 0.5 percent.
Consulting firm Accenture has presented new financial targets calling for 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 1.9 percent.
The yield on the US 10-year bond rises 7 basis points to 5.28 percent.
Brent crude rises 0.38 percent to 106.09 dollars and WTI crude increases 1.46 percent to 95.51 dollars.
IndexPriceChange todayChange this yearS&P 5007,762.25-0.55%13.39%Nasdaq Composite26,998.00-0.76%16.16%Consumer discretionary1,852.94-0.97%-3.91%Consumer staples951.080.80%9.97%Energy1,032.530.04%50.22%Financials900.35-1.27%-1.23%Health care2,016.661.88%11.67%Industrials1,417.86-0.68%7.97%Materials627.30-0.92%9.21%Real estate265.33-0.86%4.04%IT7,245.55-1.03%27.47%Utilities420.75-1.04%-3.01%Telecom480.14-0.33%6.14%Source: Factset
