EconoTicker

The U.S. Producer Price Index (PPI) data for October 2024 indicated a rise in inflationary pressures:

• PPI (YoY) increased to 2.4%, above both the expected 2.3% and the previous month's 1.9%, signaling stronger producer-level inflation over the year.
• PPI (MoM) showed a growth of 0.2%, consistent with expectations and slightly higher than September's 0.1%, indicating month-to-month stability.

Core PPI (excluding food and energy):

• Core PPI (YoY) rose to 3.1%, surpassing the anticipated 3.0% and the prior 2.9%, suggesting persistent inflation in core goods.
• Core PPI (MoM) increased by 0.3%, matching forecasts and higher than the 0.2% in the previous month.

PPI excluding Food, Energy, and Transport:

• MoM growth was 0.3%, a notable rise from 0.1% in September.
• YoY growth reached 3.5%, up from 3.3%, highlighting inflation in sectors beyond the most volatile categories.

Overall, these figures point to sustained inflationary pressure in the U.S. economy, with both headline and core PPI showing upward trends.

For the week ending November 8, U.S. labor data showed mixed signals:

• Initial Jobless Claims came in at 217,000, better than the expected 224,000 and down from the previous week's 221,000, indicating fewer new claims for unemployment benefits.
• The 4-week average of jobless claims stood at 221,000, reflecting a decrease from the prior average of 227,250, suggesting an improvement in the overall trend.
• Continuing Jobless Claims were reported at 1.873 million, slightly below the forecast of 1.880 million and a marginal drop from the previous 1.884 million, showing stability in the number of people still receiving unemployment benefits.

These figures highlight a modest strengthening in the U.S. labor market, with initial claims and continuing claims decreasing slightly, pointing to resilience in employment.

In Q3 2024, Spotify Technology (SPOT) reported earnings per share (EPS) of 1.45, which fell short of the forecasted 1.68, indicating weaker-than-expected profitability. The company's revenue was $3.99 billion, slightly below the expected $4.02 billion, suggesting modest revenue challenges. Spotify's market capitalization stood at approximately $84.22 billion, reflecting its continued presence as a leading player in the streaming industry despite these earnings and revenue shortfalls.

In Q3 2024, Shopify Inc (SHOP) reported earnings per share (EPS) of 0.285, slightly above the forecasted 0.27, indicating steady profitability. The company achieved revenue of $2.16 billion, surpassing expectations of $2.12 billion, showcasing its strong revenue growth. Shopify's market capitalization was approximately $140.7 billion, reinforcing its position as a major player in the e-commerce industry.

In Q3 2024, AstraZeneca (AZN) reported impressive financial results, with earnings per share (EPS) of 2.08, significantly surpassing the forecast of 1.02, reflecting strong profitability. The company also posted revenue of $13.57 billion, exceeding expectations of $13.06 billion, highlighting robust sales performance. AstraZeneca's market capitalization stood at approximately $197.37 billion, underscoring its strong market position and solidifying its status as a leader in the pharmaceutical industry. 

The US inflation report for October 2024 showed no surprises, aligning closely with forecasts. The Core CPI (Year-over-Year) remained steady at 3.3%, meeting expectations and unchanged from prior readings, indicating consistent underlying inflation. The Core CPI (Month-over-Month) also matched projections at 0.3%, pointing to stable, moderate price increases. The CPI (Month-over-Month) came in at 0.2%, exactly as forecasted, reflecting a slight monthly rise in consumer prices. Meanwhile, the CPI (Year-over-Year) registered at 2.6%, in line with expectations and slightly higher than the previous 2.4%, suggesting a gradual increase in overall inflation. This data underscores a steady inflation trend without major deviations from market forecasts.

Home Depot's Q3 2024 earnings report showcased strong financial performance, with an EPS of $3.78, surpassing the forecasted $3.64, indicating greater profitability than expected. The company also reported revenue of $40.22 billion, beating the projected $39.27 billion, demonstrating robust sales and effective management. Additionally, Home Depot's market capitalization was recorded at $400.38 billion, affirming its position as a leading player in the retail industry. This positive report underscores the company's resilience and ability to maintain growth amid varying market conditions.

The latest US labor market data points signal a complex economic environment with continued labor market resilience but also potential concerns regarding cost pressures and productivity growth.

While Continuing Jobless Claims rose to 1,892K, higher than the expected 1,880K and the previous 1,853K, indicating a slight increase in the number of people claiming unemployment benefits for the second week or more, the Initial Jobless Claims at 221K, printed slightly below the forecast of 223K, but higher than the previous 218K, suggesting a minor uptick in new jobless claims.

With the slower increase of initial claims this week, the 4-week Average of Jobless Claims dropped to 227.25K from the prior 237.00K, indicating a downward trend over the past month.

In more detail of labor data, we can see that Nonfarm Productivity for Q3 increased by 2.2% (QoQ), which, while positive, fell short of the expected 2.6%. This suggests productivity gains but at a slower pace than anticipated.

Unit Labor Costs for Q3 also rose by 1.9% (QoQ), surpassing the expected 1.1% but lower than the previous 2.4%, indicating rising wage costs but with some moderation.

• S&P Global Composite PMI: 54.1, just under the forecasted 54.3 but still showing expansion (above 50).
• S&P Global Services PMI: 55.0, below the projected 55.3 and the previous month’s 55.2, though still within expansion territory.

ISM Non-Manufacturing Indicators:

• Employment: 53.0, a strong rise from last month’s 48.1, signaling improvement in the services sector job market.
• Non-Manufacturing PMI: 56.0, up from both the expected 53.8 and prior 54.9, suggesting robust growth in non-manufacturing sectors.
• Prices: 58.1, a slight increase from the forecasted 58.0 but lower than the prior month’s 59.4, indicating a slight moderation in services sector inflation.

These indicators show a strong services sector, with moderate price pressures and a notable increase in service activities.

Exports: $267.90B, slightly below the previous figure of $271.80B.

Imports: $352.30B, an increase from the prior $342.20B, indicating rising demand for foreign goods.

Trade Balance: -$84.40B, a slightly larger deficit than expected (-$83.80B) and significantly wider than the previous -$70.80B, reflecting the import surge.

Trump Praises Elon Musk- In a lighthearted tone, former President Donald Trump recently admired tech entrepreneur Elon Musk, highlighting Musk’s intelligence and innovative contributions. "He's a brilliant guy," Trump remarked, adding humorously, "Every time I call him, he's talking about rockets." Reflecting on their relationship, Trump noted, "I've always had a good rapport with him."

Amazon’s Q3 2024 earnings exceeded expectations with an earnings per share (EPS) of $1.43, outperforming the forecast of $1.14. Revenue came in at $158.9 billion, surpassing the anticipated $157.25 billion. With a market capitalization now at $2.08 trillion, Amazon continues to demonstrate robust growth across its diverse business segments, reinforcing its dominant position in the market.