The most important number of the day was US CPI number.
Inflation in August declined to its lowest level since February 2021, according to a Labor Department report Wednesday that also showed a key measure higher than expected, setting the stage for an expected quarter percentage point rate cut from the Federal Reserve. Indeed, while the headline CPI increased 0.2% for the month, in line with the Dow Jones consensus, the core CPI, which excludes volatile food and energy prices, increased 0.3% for the month, slightly higher than the 0.2% estimate. The slight uptick in core CPI keeps the Fed on defense against inflation, likely negating the probability of a more aggressive interest rate when policymakers meet next Tuesday and Wednesday. Here are the details: -> CPI 0.2% MoM (or 0.187% unrounded), Exp. 0.2% - in line -> CPI Core 0.3% MoM (or 0.281% unrounded), Exp. 0.2% - hotter than expected. Note that was the 51st straight month of MoM increases in Core CPI, and a new record high. The annual prints: -> CPI 2.5% YoY, Exp. 2.5% - in line. The annual CPI increase is the lowest since February 2021... -> CPI Core 3.2% YoY, Exp. 3.2% - in line Last, but not least, and perhaps most ominous of all, is that while the Fed is about to start cutting rates, Supercore CPI rose 0.33% MoM (see chart below), the biggest monthly increase since April, driven by continued acceleration in transportation services, which jumped the most in 5 months. Source: www.zerohedge.com, Bloomberg
Walt Disney Rebounding on Major Support
Walt Disney (DIS US) reached the major support swing between 78.73-84 at the beginning of August and has started rebounding. This is a healthy consolidation following the positive breakout in March, indicating a change in the long-term trend. Source: Bloomberg
Morgan Stanley's CIO Michael Wilson says "yen carry trade risk lingers for US stocks"
Source: Bloomberg
US 10-Year Yield Back on Major Support Zone
Since October 2023, the US 10-year yield has been consolidating from its peak of 5%, and it's now reaching a major support zone between 3.24-3.64. After nearly a 30% consolidation, the big question is: will this level hold? Source: Bloomberg
ASML in a More Complex Consolidation
At the beginning of August, ASML broke the swing support at 804, sending the stock into a more complex consolidation. It is now testing the support zone between 635-682 for the second time. If this level breaks, the next major support zone to watch is between 534-566. Source: Bloomberg
US Presidential debate: Not all topics have been tackled...
Nothing about government spending. Nothing about national debt. Nothing about taxes. Meanwhile, the US debt clock is ticking... Source: Kurt Altrichter on X
$ALLY tumbled 17.5% yesterday as auto loan repayments see rising delinquency rates spook investors
More evidence that a growing portion of consumers are increasingly struggling. Source: Markets & Mayhem
🚨US BANKRUPTCIES ARE ON THE RISE🚨
The number of bankruptcy filings hit 452 year-to-date, the 2nd largest in 13 YEARS. In August alone, 63 companies went under, the 4th LARGEST since the COVID CRISIS. Most bankruptcies have been seen in the consumer discretionary sector. Source: Global Markets Investor
