Daily Digest: Highlights of Today's Stock Market Movement Oct 12. 2023

Markets looking to continue to a five day winning streak, as yesterday had all three indexes close in the green.

Consumer Price Index data (CPI), which is different from PPI, shows faster than expected inflation for the month (0.4%) and the past 12 months (3.7%). Estimates were 0.3% and 3.6% respectively. Core CPI which excludes food and energy prices was in line with expectations.

This means the Fed is not done raising and far from lowering rates. Rates need to stay high to discourage inflation. At least that is what the Fed believes, its called being hawkish. Good thing this fits into our investing philosophy! Because we expect at the minimum one rate hike in 2023 and no lowering until at least mid 2024.

UAW extends Ford strike to Kentucky truck plant. Stock is down on the news.

Stocks Im watching closely

Carvana (CVNA) downgraded to Neutral. Interesting, because I wonder if this is the beginning of the end of unaffordable used cars. The pandemic threw the used car market for a loop, and it is not done recovering.

Just like the used car market, the housing market has gone through a rollercoaster since the pandemic and is still going. DR. Horton (DHI), KB Home (KBH), and Lennar (LNR) are all being lowered by analysts. I believe this looks like we're exploring a path to the bottom to rally back from the ashes.

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