October's CPI data came in lighter than expected, raising hopes of peaking inflation.
"Inflation is much lower than the Fed thinks," Jeremy Siegel, professor of finance at the Wharton School of the University of Pennsylvania, told CNBC's Scott Wapner on Fast Money: Halftime Report.
That said, Siegel accepts that the central bank will probably lift its overnight fed funds rate another half a percentage point when policymakers next meet in December, and then pause. But that's unnecessary, the author of"Yeah, they'll probably go now 50 [basis points] and then stop, but they don't even need to do that because everything is in a down mode," Siegel said. A basis point is 1/100th of a percent.
The housing component of the consumer price index will still expand by 0.7% to 0.8% on a month-over month basis in November when the CPI is announced the day before the Fed's December meeting, and housing is 40% of the index, Siegel said. "It will continue to push up as the housing market goes down."Siegel said the implication for stocks is "the potential for a significant end of the year rally." Siegel thinks the market can rally without tech stocks leading the way.
The company improved performance across stores in the third quarter and is only seeing a 1% labor inflation rate, below others in the industry. "With the benefit of improved site selection and modeling, new stores on average are located in higher income trade areas with more revenue potential, thus likely to benefit more heavily from BROS' infill strategy where additional stores redistribute demand in busy markets," said Senatore.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
CPI Report Live Updates: Dow Gains 800 Points as Inflation Eased to 7.7% in OctoberThe Dow rose 800 points after data showed inflation eased
Read more »
Stock Market Today: Dow Surges 1000 Points as CPI Report Shows Inflation Eased to 7.7% in OctoberThe Nasdaq soared 6%, on pace for its biggest one-day gain since 2020
Read more »
October CPI expected to show inflation still ran hot even as some goods prices cooledConsumer inflation may have come down slightly in October as goods prices declined, but prices for services and rents continued to climb.
Read more »
U.S. inflation likely to post another sharp increase in October, CPI to showThe rate of inflation probably rose 0.6% last month after a 0.4% increase in September, economists polled by The Wall Street Journal forecast. Here’s what to watch in the consumer price index on Thursday morning.
Read more »
US CPI rose 7.7% in October, falling below estimatesInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »