Consumer companies saw a rise in their stock values following the release of stronger-than-anticipated consumer spending data. According to the Commerce Department, Americans increased their spending by 0.4% in August compared to the previous month.
Inflation Gauge Shows Moderate Increase
The Federal Reserve's preferred inflation gauge, the personal-consumption expenditures price index, experienced a seasonally adjusted 0.4% increase last month, primarily driven by energy costs. However, core prices, which exclude food and energy, only showed a 0.1% rise in August. This marks the weakest monthly increase since 2020, as reported by the Commerce Department on Friday.
Mixed Reactions from Experts
Quincy Krosby, chief global strategist at brokerage LPL Financial, commented on the inflation data mentioning, "It did come down from 4%, which is excellent...even though it was just a tad." Krosby highlighted that while there was a slight decrease, the inflation rate still remains high and distant from the Federal Reserve's target of 2%. Additionally, higher oil prices pose another significant concern for various sectors of the economy.
Investigation into Deal Involving French Billionaire
French prosecutors have initiated an investigation into a deal involving French billionaire Bernard Arnault and a Russian businessman. The probe aims to determine possible money laundering activities associated with the transaction.
Securities and Exchange Commission Charges Sharpie Maker
The Securities and Exchange Commission (SEC) has charged Newell Brands, the manufacturer of Sharpie markers, along with its former CEO for misleading investors regarding financial-accounting practices. As a result, the company has been fined $12.5 million by the SEC.
Aritzia Reports Surprising Revenue Growth
Despite recording a loss and projecting flat-to-lower revenue in the upcoming quarter, fashion firm Aritzia witnessed a rally in its stock following the announcement of an unanticipated rise in revenue for the latest quarter.