The September's CPI report will be released before Oct 13th, which is quite critical for the stock market, and could lead to a very big drop should it come in higher.
The estimates forecast another hot reading with CPI y/y expected to climb by 8.1% and 0.2% m/m. The Core CPI is expected to rise by 6.5% y/y and 0.4% m/m.
It's easy, 8.1% should be the bull and bear line.
Besides, we should know.
Covid-19 Again?
Officials at the World Health Organization (WHO) said that there are indications that the number of cases of COVID-19 in Europe is rising. Its indicators suggest "that another wave of infections has begun, according to WHO's statement.
Apparently, vaccination saves lives.
It decreases the chances of being infected and reduces the risk of severe consequences from COVID-19 and seasonal influenza. There is no time to lose. WHO encourage everyone eligible, especially the most vulnerable, to come forward as soon as possible for both COVID-19 and influenza vaccination.
COVID-19 vaccine stocks: $Moderna, Inc.(MRNA)$ $Pfizer(PFE)$ $BioNTech SE(BNTX)$ $AstraZeneca PLC(AZN)$ $Novavax(NVAX)$
Pepsi's Earnings
Pepsi’s strong earnings of third quarter results released on Wednesday, has shown the strong tailwind of inflation in the food industry.
It notched $21.97B in revenue alongside $1.97 in core earnings per share. Analysts had expected $1.85 and $20.82B, respectively. A 20% jump in revenue derived from Frito-Lay North America and a rapidly accelerating business in Latin America were cited as key drivers of the strong performance.
Still, it is raising the negative impact expectation for foreign exchange, with a core EPS forecast of approximately $6.73 was raised $0.10 from the previous guidance.
The stock rose more than 4% on the trading day
$Pepsi(PEP)$ 's performance well better than the market since the year.
Comments
Hurray! Today the US Indexes closed up after 6 days of consecutive downward trajectory. It was reported that September CPI was 8.2%, just marginally below August and much better than the 9.1% in June.
I believe that this is just a Bear Market rally as inflation is still high and the Feds have clearly indicated that they are intent on quelling this high inflation. So interest rates will continue its upward trend in November in the next FOMC meeting. I won't be surprised if it is another 75 basis points increase.
Nonetheless it is breath of fresh air after the doom and gloom of the last 6 days.
Thanks @MaverickTiger for your excellent insight on what to expect after the CPI report this week.
@MillionaireTiger @TigerStars