Newsletter Oct 13, 2022

3 things you must know

Higher-than-expected PPI means inflation battle far from over
U.S. producer prices increased more than expected in September, but underlying goods prices were unchanged for the first time in nearly 2-1/2 years, offering hope in the battle against inflation. The producer price index for final demand rebounded 0.4% last month. Data for August was revised lower to show the PPI falling 0.2% instead of dipping 0.1% as previously reported. Despite Wednesday's mixed report from the Labor Department, inflation remains stubbornly high, likely prompting the Fed to raise interest rates by 75 basis points next month for the fourth time this year.
FED, MARKETS LOOK AHEAD TO THURSDAY'S CPI REPORT

US stocks drop in anticipation of more interest rate hikes
U.S. stocks fell modestly Wednesday ahead of a key economic report and after Federal Reserve officials indicated more interest-rate hikes are likely. On Thursday, the Labor Department will release the latest consumer price index, a key inflation gauge, as it measures price changes in myriad common goods and services. On Wednesday, the Fed released minutes of the September meeting, when it raised interest rates by 0.75% to battle inflation.
SEE WHICH STOCKS WERE THE WINNERS AND LOSERS

Minimum wage hikes mean unhappy meals for consumers
Consumers across the country are paying more for America's most popular fast-food meal -- burger, fries, and a soda. A recent survey shows that burgers, fries, and soda meals at McDonald's, which sells more burgers than any other chain, cost around $6.19 this year, up 11.5% from 2021, and other chains are even higher. There's more than inflation and labor shortages at play as minimum wage increases are also to blame in some states.
SEE HOW MUCH COMBO MEALS COSTS IN NY, CALIFORNIA

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Markets

DJIA	29,210.85	-0.10%
S&P 500	3,577.03	-0.33%
Nasdaq Composite	10,417.10	-0.09%
Japan: Nikkei 225	26,396.83	-0.02%
UK: FTSE 100	6,826.15	-0.86%
Crude Oil Futures	87.10	-2.52%
Gold Futures	1,680.10	-0.35%
Yen	146.88	-0.01%
Euro	0.97	0.01%
* As of market close

Airlines brace for uncertain earnings reports

U.S. carriers, including American Airlines and United Airlines, are enjoying the strongest consumer demand in three years, but analysts and investors question how soon the good times might end as the growing risk of economic recession sparks worries about travel spending. As earnings season starts on Thursday, investors are looking to find out how carriers plan to offset higher costs and protect profit once consumer demand softens in the face of a possible recession.

AIRLINES WEIGHED DOWN BY RISING FUEL, LABOR COSTS

FDA expands COVID boosters for children

The Food and Drug Administration on Wednesday expanded coronavirus booster shots for children between 5 and 11 years old. The agency had previously only cleared the Pfizer-BioNTech shot for ages 12 or older, while Moderna's vaccine was solely available to those 18 and older. The move is an effort to reinforce protection against the dominant BA.5 variant. The mandate will broaden access to Pfizer's shot to children as young as 5 and Moderna's shot to ages 6 and older.

SEE HOW CHILD VACCINES ARE IMPACTING COVID'S SPREAD

SCOTUS goes pop culture in Warhol case

The Supreme Court played art critic Wednesday in a case of whether a photographer should be compensated for a picture she took of Prince used in a work by Andy Warhol. Arguments were sprinkled with eclectic pop culture references ranging from TV sitcom "Mork & Mindy" to hip-hop group 2 Live Crew. Justice Clarence Thomas even came clean as a Prince fan. Though lighter than most cases, Andy Warhol Foundation v. Goldsmith will have a big impact on copyright law and the art world.

SEE THE IMPLICATIONS OF THE WARHOL V. GOLDSMITH CASE

Deal of the art

What was Andy Warhol's highest-selling piece of art? It remains the second-highest artwork sold at auction, behind only what piece of art?

Wednesday's answer: Teen tech whiz Palmer Luckey made the first prototype for the virtual reality headset, the Oculus Rift VR, in 2011.

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