Budrigan ltd-Rising consumer prices weigh on US stocks

Budrigantrade.com - Money Road's fundamental lists fell on Wednesday as a flood in U.S. customer costs last month extended fears that high expansion is setting down deep roots in the midst of store network growls.

In addition, the consumer price index increased by 6.2% in the 12 months to October, the highest annual increase since November 1990, according to the Labor Department's report.

Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey, stated, "Even though the Federal Reserve believes that inflation is transitory, the evidence is starting to add up that that is not true."

"I think even they've got to be a little bit concerned by the strength of the increase," says the author. "The Fed has made very few moves outside of what they've told the markets they plan to do."

The report comes a day after producer prices data showed a solid rise in October. It emphasizes the extent to which manufacturers were passing on higher costs to consumers, whose spending accounts for 70% of the economy, and it comes a day after producer prices data showed a solid rise in October.

An indicator of investor anxiety, the CBOE Market Volatility index, reached its highest level in nearly a month.

In early trading, six of the 11 major S&P 500 sectors lost money, with technology and energy among the biggest losers.

Companies with huge market caps in the fields of technology and communications, such as Apple Inc. Microsoft Corporation (NASDAQ: MSFT), Meta Platforms Inc., which was Facebook in the past (NASDAQ: Facebook), and Alphabet GOOGL) Inc. lost between 1.2 and 1.9 percent.

Investors booked profits from the recent run-up in gains as Wall Street's main indexes ended their long streak of record closing highs on Tuesday, particularly in the absence of market-moving catalysts.

"It's merely a natural break. According to Thomas Hayes, managing member of Great Hill Capital LLC in New York, "The markets moved quite a bit in a short period of time off at the lows in September."

The losses on Wednesday also come after data showed that factory gate prices in China reached their highest level in 26 years in October. Additionally, economic advisers to the German government said that they expected the current rise in inflation to last well into 2022.

The S&P 500 was down 10.27 points, or 0.22%, at 4,674.98, the Nasdaq Composite was down 88.51 points, or 0.56%, at 15,798.03, and the Dow Jones Industrial Average was down 45.26 points, or 0.22%, at 36,274.72 at 9:46 a.m. ET.

For the week that ended on November 6, initial claims for state unemployment benefits decreased by 4,000 to a seasonally adjusted 267,000, according to another report from the Labor Department.

On the NYSE, there was a ratio of 1.03 to 1, while on the Nasdaq, there was a ratio of 1.44 to 1. The Nasdaq saw 38 new highs and 37 new lows, while the S&P index saw 13 new 52-week highs and no new lows.