US open: Stocks lower following hotter-than-expected CPI reading

dl wall street new york city wall st nyc new york stock exchange nyse nasdaq us usa united states of america trading finance unsplash — Sharecast / Roberto Junior via Unsplash

Wall Street stocks were in the red early on Thursday as market participants digested September's hotter-than-expected consumer price index.

As of 1530 BST, the Dow Jones Industrial Average was down 0.26% at 42,401.76, while both the S&P 500 and the Nasdaq Composite came out the gate 0.24% weaker at 5,777.98 and 18,247.29, respectiely.

The Dow opened 110.24 points lower on Thursday, taking a bite out of solid gains recorded in the previous session as the blue-chip index registered another fresh record high following the release of minutes from the Federal Reserve's latest policy meeting.

Thursday's primary focus was the US consumer price index, which rose by more than expected in September, according to the Bureau of Labor Statistics. Consumer prices climbed by 0.2% on a month-on-month basis in September, more than the 0.1% increase expected by economists, while the closely watched "core" price index, which strips out volatile food and energy costs, also came in hotter than the 3.2% expected by analysts at 3.3%. The CPI inflation measure, on the other hand, cooled slightly to 2.4% on an overall basis last month, down from 2.5% in August but short of expectations for a reading of 2.3%.

Elsewhere on the macro front, Americans lined up for unemployment benefits at an accelerated pace in the week ended 5 October, according to the Labor Department. Initial jobless claims rose by 33,000 to 258,000, significantly exceeding market expectations for a reading of 230,000 with a fresh 14-month high, adding weight to arguments that the Federal Reserve Bank will likely announce interest rate cuts in each of its remaining meetings in 2024. Continuing claims increased by 42,000, while the four-week moving average, which aims to strip out week-to-week volatility, grew by 6,750 to 231,000.

Still to come, the Federal Government's monthly budget statement will be published at 1900 BST.

In the corporate space, shares in Delta Air Lines came under pressure on Thursday after third-quarter earnings and sales guidance disappointed.

Reporting by Iain Gilbert at Sharecast.com

Dow Jones - Risers

Unitedhealth Group Inc. (UNH) $597.27 1.02%
Dow Chemical Co. (DOW) $53.94 0.97%
Chevron Corp. (CVX) $150.78 0.76%
Walgreens Boots Alliance, Inc. (WBA) $8.96 0.56%
Travelers Company Inc. (TRV) $232.30 0.36%
Cisco Systems Inc. (CSCO) $53.72 0.29%
Nike Inc. (NKE) $82.62 0.21%
JP Morgan Chase & Co. (JPM) $213.63 0.10%
American Express Co. (AXP) $271.67 0.09%
McDonald's Corp. (MCD) $303.93 0.03%