This article will be updated throughout the day, so check back often for more daily updates.
The S&P 500 surged to close 1.6% higher on Monday, but appears to be pausing for a breather this morning, with the Vanguard S&P 500 ETF (NYSEMKT: VOO) basically flat premarket.
This morning, the U.S. Department of Commerce announced September retail sales data, which showed sales began slowing even before the government shutdown through the economy for a loop. Sales increased 0.2% in September nationwide, slower than August’s 0.6% gain. Worse, essentially all the increase in September “sales” came in the form of price hikes on products. Prices rose 0.3% in the month, and if you back out that increase, shopping-sales actually declined 0.1%.
On the plus side, Commerce also released the Producer Price Index for September, showing a 0.1% rise in producers’ costs for the month — less than the 0.3% increase economists had expected. Annualized, producer prices are up 2.6%, which is also below estimates for 2.7%.
What does it mean for consumers? Well, as of September, producer costs rose less than consumer spending, so that’s probably good for retail profits… except for the fact that all this data is a month old, and things probably got worse for the economy in the midst of the nation’s longest-ever government shutdown.
Keep that in mind as we await updated data for October.
Quick Read
-
September retail sales data shows sales began slowing even before the government shutdown.
-
Producer Price Index data for September suggests cost-inflation may have slowed as well.
-
If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more here
AI news
In other news, Nvidia (Nasdaq: NVDA) shares are taking a hit this morning, down more than 4% premarket, on reports that Meta (Nasdaq: META) is planning to switch from using Nvidia “GPU” AI semiconductor chips and start buying “TPU” chips from Alphabet (Nasdaq: GOOG) instead.
As you’d expect, this news is helping Alphabet stock, which is up more than 3% this morning. It’s also helping Meta, which presumably will be getting better prices for its chips as Nvidia loses its near-monopoly status. Meta stock is up nearly 2% premarket.
The New Report Shaking Up Retirement Plans
You may think retirement is about picking the best stocks or ETFs, but you’d be wrong. See even great investments can be a liability in retirement. The difference comes down to a simple: accumulation vs distribution. The difference is causing millions to rethink their plans.
The good news? After answering three quick questions many Americans are finding they can retire earlier than expected. If you’re thinking about retiring or know someone who is, take 5 minutes to learn more here.