Rover's Weekly Market Brief - 10/11/2024

Views – Seeing What You Want to See

Stock Rover offers over 700 financial metrics for researching and analyzing securities. So how do you cut to the chase and get straight to the information that matters to you? Easy – check out our blog post on Views.

Economy

The Commerce Department reported a trade deficit of $70.4 billion in August. This represents the lowest trade deficit in five months and a decrease of (-$8.5B) from the upwardly revised $78.9B in July. This drop was mostly attributable to a (+$5.3B) rise in exports, which was bolstered primarily by increases in nonmonetary gold (+$1.5B) and pharmaceuticals (+$1.0B), while imports decreased (-$3.2B), due primarily to declines in computers (-$1.2B) and autos & accessories (-$1.3B). The goods deficit decreased (-$8.4B) to $94.9B, while the services surplus rose (+0.1B) to $24.4B. Compared to the same period in 2023, the goods and services deficit has increased by $47.1B, or 8.9%, so far this year. Exports have increased by $79.0B, or 3.9%, and imports have increased by $126.1B, or 4.9%. The trade deficit with China decreased (-$2.6B) to $24.7B as exports increased (+$1.1B) to $12.6B and imports decreased (-$1.5B) to $37.3B.

The Labor Department reported the consumer price index increased (+0.2%) in September, matching August and July. Over the past 12 months, the all items index has climbed by (+2.4%), which is 0.1 percentage point less than reported in August and the lowest value since February 2021. Increases in the food index (+0.4%) and shelter index (+0.2%) accounted for more than 75% of the monthly increase in the all items index. The energy index decreased (-1.9%) after declining (-0.8%) previous month. September’s (+0.3%) increase in core CPI inflation—which does not include food and energy—matched August’s increase. The annual rate of core CPI inflation increased (+3.3%), up 0.1 percentage point from the previous 2 months. The energy index decreased (-1.9%) after declining (-0.8%) previous month. Over 65% of the annual core CPI inflation is due to a (+4.9%) increase in the shelter index. Other indexes with significant increases over the last year include motor vehicle insurance (+16.3%), medical care (+3.3%), personal care (+2.5%), and apparel (+1.8%).

The Labor Department reported that the producer price index for final demand, which measures the prices that producers pay for goods and services, was unchanged in September, following a seasonally adjusted (+0.2%) reading in August. The index for final demand goods declined (-0.2%), following an unchanged reading the previous month. A (-2.7%) decrease in final demand energy costs was the primary factor in the decline. The index for final demand services showed an increase of (+0.2%), following a reading of (+0.4%) in August. A main contributor to the increase was a (+3.0%) rise in the index for deposit services (partial). Excluding food, energy, and trade services, the core PPI increased (+0.1%); this follows a downwardly revised (+0.2%) the previous month. Year over year, the headline PPI increased (+1.8%), an increase of 0.1 percentage point over the August reading. Core PPI inflation moved up (+3.2%) year over year, down slightly from the (+3.3%) reading the previous month.

Upcoming Economic Reports:

Thursday October 17 – Retail Sales (MoM) (September)

Friday October 18 – Building Permits (September)

Earnings Calendar:

 

Monday	Tuesday	Wednesday	Thursday	Friday
No Earnings Report	Goldman Sachs Gr (GS)	Abbott Laboratories (ABT)	Taiwan Semiconductor (TSM)	Proctor & Gamble (PG)
No Earnings Report	Citigroup (C)	Prologis (PLD)	Netflix (NFLX)	Schlumberger (SLB)