The surge in inflation complicates the work of the Federal Reserve
Midday waffle stocks
US stocks hit the worst levels of the midday session but remained lower as industrials and financials lagged.
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Stocks fall 1% after very hot inflation data
The three major U.S. stock averages fell more than 1% when trading began after the consumer price index’s surprise 9.1% jump in June. Investors are now debating the likelihood of a full one percentage point rate hike by the Federal Reserve. In commodities, oil retreated to the $86 a barrel level.
Inflation stronger than expected
Delta reports second quarter results
Delta Air Lines Inc.
It reported adjusted earnings of $1.44 per share for the second quarter. That was below analysts’ expectations of $1.73 per share, according to Refinitiv, but was still the carrier’s best performance since 2019.
Revenue for the quarter through June was $13.8 billion, beating Wall Street estimates.
Read the full story: Delta sees “significant” annual benefit on resilient consumer demand
Stock futures trade higher ahead of key inflation report
US stock futures were trading higher ahead of a much-anticipated inflation report. Major futures indices point to a 0.3% gain at the start of trading on Wall Street.
The consumer price index is expected to rise 1.1% month over month in June. That’s up from a 1.0% increase in May, but below a 1.2% peak in March.
Inflation likely peaked in June with another spike in consumer prices
Economists are looking for evidence that inflation has finally peaked, but they are unlikely to find much good news in the latest Consumer Price Index report released on Wednesday.
Gasoline keeps receding
The average price of a gallon of regular gasoline slipped Wednesday morning to $4,631, according to AAA. The price on Tuesday was $4.655. The gas went down for 26 consecutive days. Diesel also slipped to $5.611 from $5.625
Oil is trading below $100 a barrel
Oil was trading higher ahead of a US inflation report.
US crude fell below $100 a barrel for the first time since April. U.S. West Texas Intermediate crude was trading at $96 a barrel. Brent futures were at $99 a barrel. Prices fell more than 7% on Tuesday amid volatile trading.
Bitcoin below $20,000
Bitcoin was trading below $20,000 after falling for four straight days before Wednesday. The cryptocurrency is down more than 10% over this period. This is Bitcoin’s longest losing streak since June 30.
Bitcoin is up over 3% month-to-date, but down over 58% year-to-date. Ether is trading around $1,000 and Dogecoin is at 6 cents.