Index Falls as Consumer Prices Top Estimates

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Key Takeaways

  • The S&P 500 dropped 0.6% on Thursday, Oct. 12, 2023, as the Consumer Price Index (CPI) exceeded forecasts, raising concerns about more Fed tightening.
  • Hormel Foods led the S&P 500 lower as the food company released a three-year strategic update and union workers approved a new contract.
  • Walgreens announced plans to slash costs, and shares of the pharmacy chain advanced.

U.S. equities fell after a Labor Department report showed that consumer prices jumped more than anticipated last month, increasing concerns that the Fed will keep its tight monetary policy in place to fight inflation. The S&P 500 slipped 0.6% on Thursday, its first losing session in five days.

Hormel Foods (HRL) shares plunged 9.8% after the maker of SPAM and other food products gave an updated three-year strategic plan and members of the United Food and Commercial Workers Union voted for a new contract that included raises of $3 to $6 per hour and other benefits.

Warner Bros. Discovery (WBD) shares declined 5.8%, and shares of rival streaming providers also sank after negotiations broke down between Hollywood studios and striking actors.

Delta Air Lines (DAL) shares tumbled 2.3% after the carrier reduced the high end of its full-year profit forecast because of the impact of higher fuel prices.

Walgreens Boots Alliance (WBA) shares added 7% as the country’s biggest pharmacy chain said it was undertaking a $1 billion cost-cutting plan.

Fastenal (FAST) shares increased 7.5% after the maker of construction and hardware equipment exceeded earnings forecasts. More onsite unit sales and higher prices helped boost the results.

Target (TGT) shares picked up 1.7% following a Bank of America upgrade. The bank believes that Target’s shares are attractive after their recent decline and that the retailer’s margins may improve this year.



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