Coffee With Greta: Inflation Jitters Grip Traders
DJIA Futures: +32 (+0.1%)
SPX Futures: +1 (+0.03%)
NASDAQ Futures: -11 (-0.1%)
Good morning friends!
Futures are flat as traders gear up for a big week of inflation data and the beginning of Q3 earnings season.
Let’s get right to it!
Inflation Week Begins
This is a key week of economic data for the market as traders look ahead to the latest inflation data.
The Bureau of Labor Statistics releases the September producer price index on Wednesday morning followed by the consumer price index Thursday morning.
Economists expect the CPI to show inflation pressures rose 0.3% monthly and 8.1% year over year.
The core CPI is expected to have risen 0.5% monthly and 6.6% annually.
The market is looking for a slowdown in inflation to force a Fed pivot on rate hikes earlier than planned.
But officials have insisted in recent speeches that the Central Bank will stay its course even if it pushes the economy into a recession.
Several more Fed officials will speak at events this week including Chicago Fed President Charles Evans and Fed Vice Chair Lael Brainard today.
Rivian Issues Massive Recall
Rivian (RIVN) shares are tumbling 6.5% ahead of the open after issuing a massive recall over the weekend.
The electric automaker voluntarily recalled 13,000 vehicles due to a loose fastener that could cause a driver to lose steering control.
The company has produced just 14,317 vehicles this year, meaning the recall impacts nearly all of the already delivered vehicles.
Rivian’s CEO sent a letter to customers saying, “In rare circumstances, the nut could loosen fully… It’s important not to minimize the potential risks involved and why we are volunteering to conduct this recall.”
Tesla’s China Sales Hit Record
Tesla (TSLA) shares are up 0.1% in premarket trade after reporting record-high China sales.
The China Passenger Car Association said the electric automaker sold 83,135 of its China-made vehicles in wholesale in September.
That was up 8% from August and a record for Tesla.
Tesla produces the Model 3 and Model Y vehicles at the Shanghai plant.
Oil Prices Dip
Oil prices are taking a breather, slipping from 5-week highs.
West Texas Intermediate crude futures are down 0.4% at $92 bbl while Brent crude futures are down 0.5% to under $97.50 bbl.
The dip comes after China’s services activity contracted in September for the first time in four months.
That slowdown came as fresh Covid restrictions put pressure on the economy.
China is the world’s second-largest oil consumer and any slowdown in demand will put pressure on oil prices.