The Morning View: October 10, 2019

  • October 10, 2019

BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager

Announced this morning, the Consumer Price Index was flat in September, a bit lower than forecasts, and has increased 1.7% on an annual basis. The core rate, which excludes food and energy prices, increased 0.1% in September also a bit below forecasts and has increased 2.4% on an annual basis. While inflation remains muted and at levels close to Federal Reserve targets, it has increased some in recent months here in the U.S. However, inflation globally remains very low, giving the Federal Reserve even more solace in their “mid‐cycle” rate cut adjusting they are working through. Meanwhile, initial jobless claims were 210,000 for the previous week, maintaining their low levels indicative of a firm labor market. In all, bond yields ticked higher following the report and equity futures are lower heading into the market open.

 

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