• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

CPI Takes Center Stage as Anxious Investors Await

The market has been distracted by the election and crypto woes, but today's Consumer Price Index data will have a big impact on the size of the next rate hike.
By JAMES "REV SHARK" DEPORRE
Nov 10, 2022 | 06:48 AM EST

Inflation takes center stage here on Thursday morning as the highly anticipated Consumer Price Index report for October is released at 8.30 am ET. Economists are expecting some cooling to 8.1% from 8.3% last month.

The CPI report is extremely important because it is very likely to influence how much the Fed will raise interest rates at its next meeting in December. Fed fund futures currently show a near 50/50 split between a hike of 75 basis points and 50 basis points. Those odds are very likely to shift on the news today, and that is going to determine how the market moves.

Market players have been distracted this week by the election and the FTX blowup in the cryptocurrency sector. There has been a run on FTX, and the panic has driven Bitcoin and other cryptos to their lowest levels in the last two years. There is still a great amount of uncertainty, but there is some stabilization in the asset class this morning.

The election results are still unresolved, and there is a good likelihood that Senate control will not be determined until a runoff election in Georgia in December. The Republicans very likely have control of the House, and that will produce the gridlock the stock market prefers.

The market focus is now going to shift back to inflation, economic growth and the Fed. The Fed has indicated it is likely to slow hikes but hike even higher, but the first big issue is what it will do in December. Market players had hoped for a pause or pivot, but Fed Chairman Jerome Powell made it clear that even if the Fed moves to a one-half percentage point hike in December there is likely to be even more hikes down the road.

On a technical basis, the good news is that we do not have an optimistic run-up into the CPI report this time. The pattern all year has been disappointment as the market anticipated friendly data. This time we have a much better setup for a rally on good news and less downside on bad news.

On Wednesday, the underlying action in the market was particularly poor. Many high-growth and speculative names were crushed. A huge number of stocks were hit with losses of 5% or more. This was likely caused in part by the chaos in the cryptocurrency sector, but for contrarians, this may be the sort of washout that sets up a good rebound as we head into positive end-of-the-year seasonality. But first, we have to deal with CPI and Fed expectations.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
TAGS: Bitcoin | Economic Data | Federal Reserve | Interest Rates | Investing | Stocks | Trading | Real Money | Cryptocurrency

More from Stocks

Market Surprises With Rally Before Fed Day

James "Rev Shark" DePorre
Jan 31, 2023 4:38 PM EST

The bears are absolutely convinced that this market move is unjustified -- but what we're seeing has very little to do with fundamentals or the economy.

Why Is Today the Big Day? Dividends

Jim Collins
Jan 31, 2023 3:20 PM EST

The Fed has once again unwittingly unleashed the power of compounding.

Doug Kass: Believe Half of What You See and None of What You Hear

Doug Kass
Jan 31, 2023 2:15 PM EST

Ignore the growing and 'made-up' market narratives promulgated daily.

Shark School of Trading: Anatomy of a Breakout

James "Rev Shark" DePorre
Jan 31, 2023 12:00 PM EST

I'm looking for a move that would constitute a new closing high.

Honeywell Is Showing Chart Weakness Ahead of Earnings

Bruce Kamich
Jan 31, 2023 11:30 AM EST

Let's look over the charts and indicators.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:27 PM EST REAL MONEY

    LIVE EVENT: Chris Versace and "Sarge" Guilfoyle Share Their Stock Market Insights

    This Monday, Jan. 30, at 12 p.m., our very own exp...
  • 11:48 AM EST REAL MONEY

    Watch Doug Kass on the Daily Rundown!

    In today's Action Alerts PLUS Daily Rundown, Doug ...
  • 11:03 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend On Real Money

    It's time to start using this power to build great...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login