Newscasts - US Markets Briefing: Wall St edges lower after data

Nordson

12/12/2024 20:00

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Source: 'Reuters - Business videos'

Description: Wall Street's main indexes inched lower on Thursday as investors
parsed through some of the last economic datasets ahead of the Federal
Reserve's meeting next week.
Short Link: https://refini.tv/3ZsB9Zs

Video Transcript:

Wall Street edges lower. Welcome to US Markets Briefing. I'm David Pollard
after their run of highs, the S&P 500 and the NASDAQ slipped on Thursday,
while investors assessed some of the last economic data sets ahead of the
Federal Reserve's meeting. This on a day when Donald Trump rang the opening
bell, telling traders they'd see some very good days ahead. On this day, data
showed us producer prices rising more-than-expected in November amid a surge
in the cost of food, PPI jumped 0.4%, after an upwardly revised 0.3% in
October. In the 12 months through November, PPI shot up 3%, where rate of 2.6%
had been expected. A moderation in the price of services did offer hope that
the disinflationary trend continues after yesterday's CPI reading cemented
expectations of a 25-basis point-cut from the Fed next week, even as investors
start looking further ahead.

The biggest thing is what they'll guide for next year. Right now, the
consensus probably is for around anywhere between 3 and 4 cuts. So that's
about 100 more basis points next year. Now, if inflation stays a little bit
sticky, maybe the economy actually starts heating up again. Maybe they won't
cut as much, and that could be a slight headwind for the overall market, but
I'm actually more of a favor if the economy is really strong, have less Fed
cuts. And I think that would actually drive the market higher.

Meanwhile, weekly jobless claims data showed an increase of 17,000 for last
week to 242,000 more than 20,000 above expectations. But that could be down to
volatility after the Thanksgiving holiday, and it's thought unlikely to mark
an abrupt shift in the labor market. Among today's top movers, Adobe slid over
12% after the photoshop maker forecast fiscal 2025 revenue below expectations.
Nordson lost 8% as the dispensing equipment maker also disappointed with its
forecasts. But Warner Bros. Discovery jumped over 16% after the media giant
decided to separate its declining cable TV business from the streaming and
studio operations. Following on from Canada's 50-basis-point cut on Wednesday,
two of Europe's central banks have followed suit today. The Swiss National
Bank, cut by 50 basis points to just 0.5% in its biggest reduction in nearly a
decade, and the ECB cut for the fourth time this year, down by 25 basis points
to 3%. Policymakers kept the door open to further easing in 2025,
acknowledging that growth is deteriorating across the continent. Finally, the
IEA increased its oil demand forecast for 2025 to 1.1 million barrels a day on
hopes of a rebound due to China's stimulus measures. But in comments that
initially depressed prices, it also said the world oil market would be
comfortably supplied. Brent crude was down nearly $1 at $72.56 a barrel before
climbing back into positive territory. And that is US Markets Briefing