Jake Novak's Morning Business Briefing 4/10
STOCKS/ECONOMY
-Stock futures are sharply lower after Tuesday's 9-point loss for the Dow, 0.1 percent gain for the S&P 500, and a 0.3 percent advance for the Nasdaq. Investors are responding bearishly to yet another hotter-than-expected inflation report.
-That March consumer price index came in up 0.4 percent when 0.3 percent was expected. The annual inflation rate came in at 3.5 percent when 3.4 percent was expected, and annual core inflation (that strips out food and energy prices), was up 3.8 percent compared to 3.7 percent expected.
-The yield on the 10-year Treasury bond has jumped to 4.49 percent.
-The markets that measure the chances for Fed rate cuts are now showing just a 28 percent chance of a cut in June.
-The average 30-year mortgage rate rose to 7.01 percent last week from 6.91 percent the week before. That drove applications for new mortgages down 5 percent. But refinance applications rose 10 percent as some consumers were worried rates would go even higher in the near future.
-Gold is at the $2,367 per ounce level. Bitcoin is down to the $68,100 level.
-Asian markets closed mixed today. The Hang Seng rallied 1.9 percent higher, but the Shenzhen sold off by 1.6 percent, and the Nikkei fell 0.5 percent.
OIL/ENERGY
-U.S. crude prices are up, but at the $85 a barrel level after Tuesday's pullback.
-Gasoline prices are up to $3.61 a gallon, national average. That's 7 cents a gallon more than a week ago today.
FLYING HIGHER
-Delta Air Lines (DAL) reported better than expected quarterly profits, swinging back to the black after losing money in the 4th quarter of 2023. It also is forecasting stronger than expected revenues for the current quarter. Delta shares are up 4 percent in the premarket.
CHIPS AHOY!
-Taiwan Semiconductor Manufacturing (TSM) reported a 34.3 percent revenue increase this March compared to March of 2023. Its shares are up 1 percent in the premarket.
ALIBABA MEMO
-Investors are cheering an internal memo from Alibaba (BABA) co-founder Jack Ma that expressed strong confidence in the company's management team. Alibaba shares are up 3 percent in the premarket.