Market Updates with FunderPro
- Stocks end mixed as Boeing deal pushes Dow Jones into green territory
- Upcoming US CPI data will provide a snapshot of current economic outlook
The Dow Jones Industrial Average (DJIA) edged up 0.15% in Monday’s session, driven by Boeing’s $52 billion Emirates deal. By curtain call on Monday’s session, the tech-heavy Nasdaq bowed out with a 0.23% loss, followed by its blue-chip peer, the S&P 500, stumbling with a 0.09% decrease.
Dubai-based airline Emirates placed a 95-heavy order for 3 different aircraft models to top-up its fleet, dropping a casual $52 billion on the deal. Unveiling the agreement at Monday’s Dubai Air Show, Emirates CEO Ahmed bin Saeed Al Maktoum revealed the purchase consists of 55 Boeing 777-9 jets, 35 of the smaller Boeing 777-8s, plus an additional five Dreamliner jets. To even further push DJIA in the right direction, Emirates’ sister airline flydubai jumped on board and ordered 30 787s from the aviation giant.
The positive developments don’t stop there, with optimistic news that China may thaw out its current freeze on the purchase of 737 Max aircraft. The narrow-bodied jet was grounded worldwide in March 2019, after two major crashes in 2018 claimed 346 lives. A potential 737 deal in China would mark a significant breakthrough not only for Boeing, which hasn’t sold any planes to the Asian country since before the tragic accidents but also for its relationship with the US. Presidents Joe Biden and Xi Jinping will meet this Wednesday at the APEC summit, where it’s expected that discussions regarding the purchase will take place.
Following the good news coming from Dubai and (potentially) China, Boeing shares took flight, surging by 4% and notching a 6% increase in the year to date. The gains in turn pushed the Dow Jones Industrial Average higher, helping the blue-chip index reach an 8-week high.
Today, market participants are eagerly anticipating the release of important inflation data. The US Bureau of Labor Statistics is set to release October’s Consumer Price Index (CPI) data at 8:30 a.m. ET. Projections suggest a year-over-year slowdown in headline inflation, dropping to 3.3% from September’s reported 3.7%. Moreover, this number is expected to ease to 0.1% month over month, compared to September’s 0.4% pace. Core CPI is forecast to hold steady at 4.1%.
Serving as a key measure of inflation, both traders and policymakers such as the Federal Reserve will be keeping a close eye on the CPI print. If the Fed’s rate hikes are finally starting to bite, there should be no nasty surprises.
For our traders, it’s clear that navigating a constantly evolving financial landscape can be quite the task. By keeping in the loop of economic news, such as the CPI report, and integrating it into your strategy, you can gain a certain edge. As the spotlight shifts towards the CPI report, it’ll be important to keep your cool amid any market volatility.