CNBC Daily Open: Inflation and spot plans

This report is from today’s CNBC Daily Open, international markets bulletin. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. As you see? You can subscribe here.

The US government is suspended
The US government is narrow escaped its closure After President Joe Biden signed Saturday’s interim government funding bill. President-elect Donald Trump and Elon Musk tore through the initial, negotiated financing plan on Wednesday with harsh criticism of its provisions, notably insisting on suspending the US debt limit for two years.

Slight coolness in price increases
Core inflation in the US in November It increased by only 0.1% from Octoberpersonal consumption expenditure according to the price index. On an annual basis, prices increased by 2.4%. Both readings were 10 basis points below expectations. Core inflation also fell 10 points below the forecast. PCE is the US Federal Reserve’s preferred measure of inflation.

US and Asia-Pacific markets are rising
on Friday, S&P 500 It increased by 1.09% Dow Jones Industrial Average It added 1.18% and Nasdaq Composite It increased by 1.03%. But all indexes fell into the week. Asia-Pacific shares rose on Monday, After a positive result on Wall Street on friday. of Japan Nikkei 225 developed around 1.2% Honda, Nissan and Mitsubishi reported informed the country’s Ministry of Industry about the start combination speaks.

CEOs see the door
blue chip companies like Boeing, Intel and Starbucksannounced the changes in the chief executive directors this year. They are not alone. there was 327 CEOs left in US public companies by November of this year, according to outplacement firm Challenger, Gray & Christmas. That’s the highest level since the firm began tracking the data in 2010.

(PRO) Bet on Broadcom
Nvidia AI is undoubtedly the king of the chip space, and it’s hard to see any company dethroning it in terms of market capitalization. But one portfolio manager told CNBC that Broadcom next in terms of performance potential is Nvidia

Shares sold out on Wednesday After stating that Fed two quarterly rate reduction in the coming year, down from the previously predicted four. “We’re off track on 12-month inflation” he said Fed Chairman Jerome Powell at a press conference.

But November PCE came in colder than expected. “Stick inflation is a little less stuck this morning,” said Chris Larkin, managing director of trading and investing at E-Trade Morgan Stanley.

Fed stressed again and again that it is “data dependent”. Would the Fed have presented the world with a slightly different dot plot if it had had a chance to review the PCE data first?

Giving some credence to that train of thought, Chicago Fed President Austan Goolsbee told CNBC’s Steve Liesman that he hoped November’s inflation reading “suggests that several months of firming is more of a shock than a change in direction.” In other words, the economy is “still on track to hit 2%,” Goolsbee said.

Then again, Powell he said In July, the central bank was “data-dependent but not data-dependent” on interest rate cuts. Even if November’s PCE index indicated that inflation had returned to a downward trend, the one-month data would not change points. Maybe it would be cooler to read two months in a row?

These questions are rhetorical. Conditional questions are unanswerable, especially in markets. But with their uncertainties and cyclical nature, they highlight that trying to time the market or play the game may not be the best idea, especially during such volatile times.

Instead, delve deep into the fundamentals—earnings, cash flow, future returns—that affect stocks, even as inflation and interest rates rise and fall. Remember the days when inflation reports and Fed meetings were just another day in the markets?

— CNBC’s Jesse Pound, Brian Evans and Sean Conlon contributed to this report.