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Better-Than-Expected CPI Data For October

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Pre-market futures are down across major indexes this morning, ahead of plenty developments ready to unfold today. Among these are testimony from Fed Chair Jay Powell, for the first of two speeches — one today at the Joint Economic Committee and one tomorrow at the House Budget Committee — and the first major addresses since the Fed cut interest rates 25 basis points late last month.

By now, Powell has learned not to rock the boat with his ruminations on monetary policy. And not much has changed over the past two weeks that might demand a shift in focus from the Fed Chair, aside from perhaps that markets are now hovering around all-time highs yet again this year. How does Powell forecast the market looking into 2020?

The Consumer Price Index (CPI) for October came in slightly hotter than expected on the headline this morning, +0.4% from the 0.3% estimated, and the 0.0% reported a month ago. Core CPI — ex-food & energy prices, stripped out to eliminate short-term price volatility — came in right in-line at +0.2%, ahead of the 0.1% reported for September.

Year over year, CPI on headline reached +1.8%, with core +2.3%. These figures are roughly in-line with expectations, though the core figure is a tad light. Real average weekly earnings rose 0.9%, down from the 1.0% reported a month ago, while hourly earnings went up 1.2%. This numbers help point out that inflation has yet to meaningfully creep into the economy, even with gasoline prices having risen 3+% last month.

Shares of Canada Goose (GOOS - Free Report)  look to rebound following a much better-than-expected fiscal Q2 2020 earnings report ahead of today’s open: 43 cents per share easily outpaced the 35 cents expected (and 35 cents reported in the year-ago quarter). Sales of $222.7 million beat estimates by 8.73% (and well-above the $176.22 million in fiscal Q2 2019). Shares are still under water on the year, after falling 25% following a poor performance in its Q4 2019 earnings report back in May. 

Energizer Holdings (ENR - Free Report) , parent company of popular brands like Energizer batteries, Armor All, STP and more, topped estimates on both top and bottom lines this morning, as well. Earnings of 93 cents per share surpassed the 81 cents expected (83 cents a year ago) on revenues of $719 million, which beat expectations by 0.84% (+58% year over year). Shares are up 7% on the news, erasing the 7% crater in share value year to date.


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