Wall Street Breakfast: Earnings Kickoff

Earnings kickoff

CPI still hot

Retail inflation slowed again in Sept. from the prior month, but came in hotter than expected as rental costs surged, accounting for more than half of the increase. Growth in the Consumer Price Index slowed to 0.4% M/M from a 0.6% increase in Aug. Core CPI, which excludes food and energy, stayed steady at a 0.3% M/M increase. The latest data pushed stock markets lower, while Treasury yields rose. Investing Group Leader David Alton Clark, said the data indicated that rate hikes are "by and large" over, but Boston Federal Reserve President Susan Collins said she wouldn't "take further tightening off the table yet." Note that the Producer Price Index growth had also slowed, but was still stronger than expected. (119 comments)

Last hurdle cleared

Microsoft's (MSFT) revised $69B offer to acquire Activision Blizzard (ATVI) has passed muster with U.K. regulators, clearing the way for the technology sector's biggest-ever acquisition. The U.K.'s Competition and Markets Authority granted consent for the revised deal today, which excludes Activision's cloud streaming rights that will be sold to French firm Ubisoft (OTCPK:UBSFY). The regulator's objections to the mega deal marked the last major global hurdle for the acquisition that has been more than a year and a half in the making. SA analyst DJTF Investments had rated Activision a 'Hold,' given the deal value's limited upside to Activision's shares and uncertainty over the deal's closing date. (11 comments)

Closing loopholes

As chip export controls are being finalized in the U.S., Washington is considering ways to close a loophole that gives Chinese companies access to American AI chips through units abroad. The Biden administration has been cracking down on chip exports to China, with updated rules expected as soon as next month. It is also looking at closing the loophole that allows Chinese parties to access U.S. cloud providers like Amazon Web Services. Nvidia (NVDA) and AMD (AMD) are two of the most notable semiconductor companies that have been impacted by the U.S.'s export controls in recent months, while Dutch chip equipment maker ASML (ASML) has also been in the crosshairs. (2 comments)

Today's Markets

In Asia, Japan -0.6%. Hong Kong -2.3%. China -0.6%. India -0.2%.
In Europe, at midday, London -0.7%. Paris -1%. Frankfurt -1%.
Futures at 6:30, Dow -0.1%. S&P -0.3%. Nasdaq -0.6%. Crude +3.9% to $86.18. Gold +0.9% at $1,900.60. Bitcoin +0.1% to $26,760.
Ten-year Treasury Yield -9 bps to 4.62%.

Today's Economic Calendar

8:30 Import/Export Prices
9:00 Fed's Harker: Economic Outlook
10:00 Consumer Sentiment
1:00 PM Baker Hughes Rig Count

Companies reporting earnings today »

What else is happening...

More than 7M Americans have received updated COVID shots.

Qualcomm (QCOM) plans job cuts in California to slash costs.

Tesla to hike wages for German plant workers amid union dispute.

Cassava (SAVA) falls on probe into Alzheimer's drug data manipulation.

Disney (DIS), Comcast hire banks to arrive at Hulu valuation for sale.

Dollar General (DG) brings back ex-CEO Todd Vasos to take the helm.

China eyes setting up stabilization fund to boost weakening stock market.

California preparing lawsuit to block Kroger (KR)-Albertsons (ACI) deal.

Boeing (BA), Spirit Aerosystems (SPR) expand inspections of 737 Max 8.

GM (GM) EV battery plant could face $270K in fines for safety violations.