Macro Matters

U.S. Inflation Rate Exceeded Expectation in September 2024

In September 2024, the annual CPI in the US continued its downward trend for the sixth straight month, reaching 2.4% — the lowest level since February 2021, down from 2.5% in August. This figure slightly exceeded the anticipated rate of 2.3%. On a monthly basis, the CPI increased by 0.2%, surpassing expectations of a 0.1% rise.

The annual core inflation, which excludes volatile items like food and energy, ticked up to 3.3% from 3.2% in the preceding two months, despite predictions it would remain unchanged.

U.S. Jobless Claims Hit 14-Month High, Impacted by Hurricane Helene

The number of U.S. initial jobless claims surged by 33,000 to 258,000 for the week ending October 5th, exceeding the anticipated 230,000. This increase, the largest in 14 months, was significantly influenced by sharp rises in Michigan and states impacted by Hurricane Helene.

Source: Trading Economics

Smart Money Flow

BofA's private clients have reduced their cash allocation, remaining below the long-term average, while increasing their equity exposure.

Recent downward revisions in S&P 500 EPS estimates for 2024-25 reflect a cautious approach from analysts, primarily driven by economic uncertainties.

Hedge Funds Sold Record Chinese Stocks on Tuesday, according to Goldman Sachs.

“Hedge funds not only unwound their long positions but added shorts to their books as well, with long sells being double the amount of short sells”

Top Corporate News

Musk Shows Off Driverless Robotaxi to Be Priced Under $30,000.  Investors wanted more details.

Elon Musk unveiled two autonomous vehicles: the Cybercab, a driverless two-seater designed for ride-sharing, and the Robovan, which can transport up to 20 people. The Cybercab is expected to cost under $30,000, with future plans for Uber and Lyft drivers to manage a fleet of them like "shepherds."

His slew of announcements during a 20-minute presentation were short on practical details, which pushed the stock to close nearly 9% lower at $217.80 on Friday.

Shares of ride-hailing firms Uber (UBER.N), opens new tab and Lyft (LYFT.O), opens new tab closed about 11% and 10% higher, respectively, as analysts said the lack of details on Tesla's robotaxis eased competition worries for the companies.

AMD Price Levels to Watch as Stock Tumbles After AI Chip Unveiling.

Shares of Advanced Micro Devices (AMD) fell 4% on Thursday as the chipmaker's new AI lineup failed to excite investors who are eager to see the company take on Nvidia .

AMD’s next-generation MI350 chip, which aims to compete with Nvidia’s new Blackwell system, is on track to ship in the second half of 2025. MI350 will support FP4 and FP6 and be a 3nm part. It will also offer CDNA 4 versus the MI300X and MI325X era CDNA 3.

Analysts said investors may have been looking for clearer signs of competition with AI investor darling Nvidia, an outlook boost, or a new customer announcement.

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