Markets Steady As Investors Ponder Inflation – Gold Rises On Falling Dollar

U.S. stock markets clung to the flatline as investors  were up as oil prices dropped, easing some of the lingering inflation concerns.

Investors focused on key inflation data, which came in worse than expected. September CPI came in higher than expected with a gain of 5.4% (year-over year.)

The worse-than-expected inflation data has investors questioning whether companies will be able to maintain their profitability. Delta, for example, informed investors in its quarterly earnings report (which was stronger than expected in the third quarter) that increasing costs will put pressure on its fourth quarter profits.

As inflationary pressures mount, investors may begin pricing in an increase in interest rates from the Fed.

U.S. Dollar and Treasuries

The yield on the 10-year Treasury was at 1.55% as the U.S. dollar, trading via a basket a currencies in the DXY U.S. dollar index moved down -0.47% to 94.07.

Stocks To Watch

Shares of an investment company BlackRock traded up 3.67% as the company released favorable Q3 earnings reports. Company executives explained that economic recovery helped boost the value of assets under its management, which drove up free income.

Shares of a gold mining company Newmont moved up 3.2% as the outlook for gold improved and after the company’s CEO talked about the need for consolidation in the mining industry.

Shares of the banking giant Charles Schwab traded higher after the company named Rick Wurster as President. Wurster joined Schwab in 2016 and was serving as a Managing Director and head of Schwab Asset Management before the new appointment

Oil stocks dropped with oil prices in premarket trading. Shares of Marathon Oil, Devon Energy, Valero Energy and Occidental Petroleum traded lower in premarket trading.

Commodities To Watch

Oil held above $80 after a four/day advance amid the global energy crisis. Gold was up roughly 2%. Investors believe that the fundamentals for gold remain strong, especially on worries over inflation and stagflation.

Crypto

The global crypto market cap is $2.28T, a 0.95% decrease over the last day. Bitcoin’s dominance is currently 45 56%, a decrease of 1 44% over the day.