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Monday’s CPI Could Decide Your Next Mortgage Payment

  Canada lost 68,000 jobs in September. Inflation is sitting at 3%. The Bank of Canada has to decide on October 28 which of those facts matters more, and on Monday morning one more number lands to help it choose. If you carry a variable-rate mortgage, a HELOC or a renewal this winter, that number has a price tag. Two reports pulling in opposite directions The jobs data came first. Statistics Canada reported on October 9 that employment fell by 68,000 in September, pushing the unemployment rate to 6.5% from 6.4%. It followed a drop of about 42,000 in August, which means more than half of the 181,000 jobs gained between April and July have now been wiped out. Ontario shed 20,000 positions on its own. Markets reacted within hours: the odds of a quarter-point Bank of Canada hike on October 28 dropped to roughly 25% from about 40%, according to LSEG data reported by Reuters. Inflation is telling the opposite story. The consumer price index rose 3.0% year over year in August, matching Ju...
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Dow Jones Industrial Average Closes at Second-Straight Record High as Big Tech Kicks Off Earnings

 

The Dow Jones Industrial Average (DJIA) closed at a second-straight record high on Tuesday, as quarterly earnings from big tech companies were released and economic data showing ongoing labor market strength was digested. The Federal Reserve also kicked off its two-day meeting on Tuesday.

Microsoft, Alphabet, and AMD kicked off the earnings season for big tech with better-than-expected quarterly earnings. The trio’s earnings come just ahead of earnings from Amazon, Apple, and Meta due later this week. Collectively, the market capitalization of Alphabet, Microsoft, Apple, Amazon, and Meta accounted for the bulk of S&P 500’s 24% gain in 2023.

In other tech news, Super Micro Computer rose more than 3% after the data center hardware maker reported second-quarter results that topped Wall Street estimates amid a boost from artificial intelligence-led demand.

General Motors’ stock rose nearly 7% after the auto giant provided investors with an upbeat outlook for 2024 and signaled more capital could be returned to shareholders.

The U.S. Labor Department’s latest Job Openings and Labor Turnover Survey, a measure of labor demand, showed job openings in December climbed to 9.03 million, above economists’ estimates of 8.75 million. The ongoing signs of labor market strength arrived on the heels of data showing consumer confidence jumped to a 2-year high. The duo of reports, signaling economic strength, pushed 2-year Treasury yields higher, as investors bet that the data will likely encourage the Fed to maintain its higher-for-longer rate regime as the central bank kicked off its two-day meeting.


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