US stocks mixed; Powell's speech awaited after PPI release

U.S. stocks traded in a mixed fashion Thursday as investors digested the latest inflation data ahead of an eagerly-awaited speech by Federal Reserve Chair Jerome Powell.

At 09:50 ET (14:50 GMT), the Dow Jones Industrial Average rose 55 points, or 0.1%, while the S&P 500 index dropped 2 points, or 0.1% and the NASDAQ Composite fell 30 points, or 0.2%.  Powell speech, PPI data  in focus 

Investors will focus on an address by Fed Chair Jerome Powell later in the session for more cues on monetary policy, after the central bank cut rates by 25 bps last week.

How Powell sees inflation evolving in the coming months could be a major factor driving market sentiment, particularly with some economists predicting that President-elect Trump's policy proposals may place renewed upward pressure on prices -- and persuade the Fed to leave rates at a higher level.

Data released earlier Thursday showed that US producer prices increased at a faster annual rate than anticipated in October, rising by 2.4% compared to a year ago, up from 1.9% in September and above economists' estimates of 2.3%.

For the month, the measure came in at 0.2%, accelerating from an upwardly-adjusted 0.1% in September and in line with projections.

Excluding more volatile items like food and fuel, the reading came in at 0.3% month-on-month, in line with estimates. Year-over-year, the so-called "core" index moved up by 3.1%, compared to expectations of 3.0%.

This follows Wednesday's consumer prices, as the headline rate rose slightly year-on-year, while core inflation remained pinned above 3%.

“The PPI report broadly backs up CPI in terms of a slowing in progress on underlying inflationary pressures. For now, though, the outlook for core PCE is soft enough to keep the Fed on track for another rate cut in December," said Kyle Chapman, FX Markets Analyst at Ballinger Group.

"Both the macro story and the election result have me increasingly convinced that the pace of easing will be significantly slower next year, however." Disney 's streaming business shines 

On the corporate front, Walt Disney (NYSE:DIS ) stock soared 10% after the entertainment giant reported better-than-anticipated income and revenue in the fourth quarter, bolstered in particular by strength at its key streaming business, which helped power a 14% jump in revenue.

Additionally, Cisco Systems (NASDAQ:CSCO ) stock slipped 2% after the networking equipment manufacturer unveiled a tepid full-year outlook, while reporting a fourth straight quarter of declining revenue.

Advanced Micro Devices (NASDAQ:AMD ) stock rose 1% after the chipmaker said it will lay off 4% of its global staff, or around 1,000 positions.

Elsewhere, Tapestry (NYSE:TPR ) stock rose 10% while Capri (NYSE:CPRI ) fell 4% after the two US-based luxury fashion houses called off their merger after the deal was blocked by the Federal Trade Commission.   Crude helped by IEA report 

Oil prices edged higher Thursday, helped by the IEA lifting its demand growth forecast.

By 09:50 ET, the Brent contract was 0.9% higher to $72.94 per barrel, while U.S. crude futures (WTI) traded 1% higher to $69.09 a barrel.

The International Energy Agency published its monthly report earlier Thursday, and raised its 2024 demand growth forecast by 60,000 barrels per day, while keeping its 2025 oil demand growth forecast at 990,000 bpd.

That said, the Paris-based agency stated that global oil supply will substantially exceed demand in 2025 even if cuts remain in place from OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies like Russia, as rising production from the United States and other outside producers outpaces sluggish demand.

This report has been greeted more enthusiastically after the OPEC trimmed its demand forecast for a fourth consecutive month earlier in the week, citing persistent concerns over cooling Chinese demand. . 

The EIA publishes its weekly crude oil and product stockpile data later in the session, a day later than usual following Monday’s Veterans’ Day holiday in the US.

(Ambar Warrick contributed to this article.)  

Source: Investing.com