The first Slice for Thursday, November 11, 2021

(MarketWatch) — U.S. stocks ended lower Wednesday, extending Tuesday’s losses, after data showed consumer price inflation jumping to the highest in three decades.

  • The Dow fell -240.04 or -0.66%
  • The S&P 500 slid -38.54 or -0.82%
  • The Nasdaq down -263.84 or -1.66%

The Nasdaq Composite led the way lower for major indexes, suffering its worst one-day slump since Oct. 4, as a the 10-year Treasury note yield rose by the most in one day since Nov. 9, 2020, and the 30-year Treasury bond saw its biggest daily jump since March 12, following a poor auction of long-term bonds. Technology and growth-oriented stocks, which make up much of the Nasdaq Composite, are seen as more sensitive to rising interest rates. 

The decline in stocks and the sale of 30-year government debt that some analysts described as “disastrous,” comes after inflation data revived concerns that the resulting rise in borrowing costs may upend the current bull run for stocks. 

The consumer-price index rose 0.9% in October, compared with economists’ expectations for a rise of 0.6%. The core reading, which excludes volatile food and energy prices, rose 0.6% versus expectations for a 0.4% rise. Year over year, CPI rose 6.2%, a nearly 31-year high and more than triple the Federal Reserve’s 2% target.

Separately, data showed first-time applications for unemployment benefits fell by 4,000, to 267,000, in the week ended Nov. 6.

Still, equities are trading not far off all-time highs. The S&P 500 and Nasdaq logged the latest in a series of record closes on Monday, while the Dow finished at a record on Friday. The S&P 500 is up nearly 24% in the year to date, while the Dow has risen nealry 18% and the Nasdaq 21%.

The CPI update comes a day after data showed a further climb for U.S. producer prices. Meanwhile, China on Tuesday reported its own factory gate prices surged 13.5% in October, the highest since 1996.Consumer prices in the country rose 1.5% to a 13-month high, driven mainly by a jump in prices for food and fuel.

Shares of Tesla stabilized, rising 4.3% after a tumble of 11% on Tuesday following a string of headlines that rattled investors. Founder and CEO Elon Musk over the weekend asked Twitter followers if he should sell 10% of his stock, with the majority saying yes, and his brother Kimbal sold shares a day before that tweet.

After surging 42% in October, the electric-car maker’s stock has dropped 12.6% this week.

Amazon.com Inc. -backed electric-vehicle maker Rivian Automotive Inc. made its debut on the Nasdaq Inc., rising 29% to end at $100.73. Rivian priced its initial public offering at $78 a share Tuesday evening.

Rivian IPO: 5 things to know about the Amazon-backed electric-vehicle maker

And: NIO forecast disappoints as Chinese electric-car maker faces supply-chain concerns

  • Coinbase Global Inc. stock fell more than 8% after the cryptocurrency platform reported disappointing sales amid a summer slowdown in crypto trading.
  • DoorDash Inc. stock climbed 11.6%, after the delivery company posted record sales and orders, and announced an all-stock dealvalued at more than $8 billion for Finnish commerce-delivery platform Wolt.
  • Upstart Holdings Inc. reported better-than-expected earnings for its latest quarter, but shares fell more than 18%.
  • Perrigo Co. stock fell 11% after disappointing earnings and a profit warning from the Dublin-based consumer self-care products maker, which said it saw record unshipped orders due to supply chain issues.
  • The U.S. benchmark crude contract fell $2.81, or 3.3%, to end at $81.34 a barrel.
  • Gold futures  settled at their highest since June, up $17.50, or 1%, to at $1,848.30 an ounce.

Full Loaf Hot LinkOriginal Article By: William Watts

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