November Market Multiple Table: Solid Upside (If Tech Stabilizes)
What’s in Today’s Report:
- November Market Multiple Table: Solid Upside (If Tech Stabilizes)
- Market Valuation Update: Well Within Fair Value Range
Futures are flat as some hawkish Fed rhetoric is offsetting a continued drop in oil prices ahead of today’s CPI report.
Fed Governor Waller (who isn’t leadership but is important) warned a 50 bps hike in December is on the table if inflation stats don’t improve and that’s weighing on futures slightly.
Geopolitically, President Trump stated that the Iran war will end “fairly soon” and oil is falling modestly as a result.
Today focus will be on inflation and AI.
First, on inflation, CPI is the key report today and expectations are as follows: CPI (E: 0.3% m/ 3.9% y/y). Core CPI (E: 0.2% m/m, 2.8% y/y). Markets need to see in-line numbers (and ideally numbers below expectations) otherwise concerns about a 50 bps December rate hike will start to rise (and pressure stocks).
On earnings, the key report is Core Weave CRWV ($-1.45) and investors will want to see evidence of strong credit availability and backlog turning into actual revenue! Other reports today include: SE ($0.79), ONON ($0.42), QBTS ($-0.14), RGTI ($-0.08).