Welcome Back,

Earnings season is back! Inflation is hot…

Market Headlines 👀 

• US Headline CPI data came in at 3.7% YoY; est: 3.6%. Core CPI came in line at 4.1%.

• US PPI came in at 2.2% yesterday; est: 1.6%.

• US weekly jobless claims came in at 209; est: 210k.

• US 30y bonds issued in the latest auction today saw weaker demand than expected, following the sticky inflation data we received today.

• US Social Security Administration announces recipients will see a 3.2% in payments starting in 2024.

• Microsoft (MSFT) plans to launch its own AI chip ‘Athena’ next month during their annual event.

• Alphabet (GOOGL) reveals new updates to its AI feature ‘Search Generative Experience’ to generate images using prompts.

• Chipotle (CMG) plans to increase pricing again for the fourth time in two years.

Earnings 💸

• Dominos (DPZ)

  • EPS: $4.18 beats (exp. $3.70)

  • Revenue: $1.03b misses (exp. $1.05b)

• Delta Airlines (DAL)

  • EPS: $2.03 beats (exp. $1.95)

  • Revenue: $15.5b beats (exp. $15.1b)

• Walgreens (WBA)

  • EPS: $0.67 misses (exp. $0.69)

  • Revenue: $35.4b beats (exp. $34.8b)

  S&P 500 Heat Map

Recap Around the Street 🧠

The Fed has tied their policy guidance to supercore or core services ex shelter, which largely consists of insurance, recreation, and travel. The 0.6% jump m/m and 3.9% increase will likely keep the fed on hold for longer than what market is anticipating. This could all change if we see a meaningful decline in this measure but it would need to be demand induced.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Much of the earnings optimism is driven around big tech spending (cloud, generative AI) which is increasingly viewed as secular rather than cyclical.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Friday, October 13th: University of Michigan sentiment

• Friday earnings: JP Morgan (JPM), Blackrock (BLK), Citigroup (C), Wells Fargo (WFC), United Health Group (UNH), and PNC Financial (PNC)

• —> Podcast spotlight: Pounding the Table 👊 : listen now; where you will find in-depth analysis around these highlights, read company deep dives, and interviews with public CEO's!

That’s all for this week, folks! We’ll be back around the same time Monday with a curated list of important news, economic data and market highlights. 

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