The daily business briefing: November 15, 2023
Inflation cooled more than expected in October, the House passes a stopgap proposal to avert a shutdown, and more
1. Inflation cools more than forecast
Inflation cooled more than expected in October, according to the Bureau of Labor Statistics consumer price index released Tuesday. Prices rose last month by 3.2% compared to a year earlier, down from a 3.7% rate a month earlier and far below the 9% high seen in summer 2022. Prices in October were flat compared to September, the first time that has occurred in more than a year. So-called core inflation, which excludes volatile food and energy prices, was 4% on an annualized basis, the lowest since September 2021. Despite the better-than-expected news, inflation remained above the Federal Reserve's 2% target. ABC News
2. House passes bill to avert shutdown
The House on Tuesday passed Speaker Mike Johnson's (R-La.) plan to avert a government shutdown, with 209 Democrats and 127 Republicans voting to pass the spending deal over GOP hardliners' objections. The House expedited its vote in a process requiring a two-thirds majority. The 336-95 vote increased the odds that Congress will pass a fix before government agencies run out of funding on Nov. 18. Senate Majority Speaker Chuck Schumer (D-N.Y.) said he was "heartened, cautiously so," by the bill proposed by Johnson, which would fund some government agencies through Jan. 19 and the rest through Feb. 2. Schumer said he and Republican leader Mitch McConnell (R-Ky.) would "figure out the best way to get this done quickly" in the Senate. Bloomberg
3. GM union workers split so far on deal that ended strike
A majority of United Auto Workers members at several General Motors factories voted against the tentative agreement that ended their strike, putting its future in jeopardy. About 68% of workers at a GM factory in Tennessee and a majority at an engine factory in Flint, Michigan, opposed the deal, making the overall vote across GM plants roughly even after one-third of GM's 46,000 union workers had cast ballots. At Ford, where nearly half of union members have voted, about 66% have backed the tentative contract. At Stellantis, one-fifth of union members have voted and 81% backed the deal. UAW President Shawn Fain said workers should support the deal because negotiators "squeezed every penny we could get out of these companies." The Wall Street Journal
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4. Stock futures rise after Tuesday's rally
U.S. stock futures rose slightly early Wednesday after the previous day's big gains, fueled by the October consumer price index report showing cooler-than-expected inflation. Futures tied to the Dow Jones Industrial Average and the S&P 500 were up 0.3% and 0.4%, respectively, at 7 a.m. ET. Nasdaq futures were up 0.6%. Investors on Wednesday are digesting the inflation news and the House's approval of a stopgap spending deal to avert a government shutdown that could hit on Saturday. The inflation data boosted hopes the Federal Reserve would stop raising interest rates, sending Treasury yields plunging and stocks surging. The Dow and the S&P 500 jumped 1.4% and 1.9%, respectively, on Tuesday. The tech-heavy Nasdaq shot up by 2.4%. Investor's Business Daily
5. Target sales slow but beat expectations
Target on Wednesday reported third-quarter sales and earnings that beat expectations. The big-box retailer said frequently purchased products like food and beauty supplies offset weak customer spending on things other than necessities. Same-store sales fell for the second straight quarter. Target's chief financial officer, Michael Fiddelke, said the company is "laser-focused on moving both traffic and sales back into positive territory," although he warned that wouldn't happen in 2023 even with the traditional holiday shopping binge. The retail industry has been struggling with slowing sales as budget-conscious shoppers pull back due to high prices. CNBC
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Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.
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