US inflation data. Investors are balancing higher year‑ahead price expectations from the Michigan survey against a crowded US CPI report scheduled for later today.
The University of Michigan survey showed one‑year inflation expectations at 4.7% for October, while overall consumer sentiment fell to a five‑month low. This combination suggests households feel pressure and heightens the importance of today’s CPI and core CPI releases.
When inflation expectations rise, market participants typically factor in the possibility of a more persistent Fed stance, which can lift borrowing costs for mortgages, credit cards and corporate debt. Energy‑driven price headlines further sharpen focus on how long higher financing costs may linger for consumers and businesses.
The key question is straightforward. If CPI and core CPI come in at or above the current consensus of 3.7% and 2.5%, will the Fed opt for another rate hike or maintain a cautious approach, and how much inflationary pressure can equities absorb?
Stocks to Watch Before the Opening Bell
Edison International is reaffirming its 2026 core earnings guidance of US$5.90‑US$6.20 per share and aims for annual core earnings growth of 5%‑7% through 2030. Income‑focused investors are also attracted by a 6.4% dividend yield. The trade‑off remains clear: wildfire liabilities, grid‑upgrade spending, regulatory issues and financing costs continue to pose significant risks.
ON Semiconductor returns to attention after management expanded its 2030 AI data‑center addressable market estimate from US$12 billion to nearly US$50 billion. The company recently posted Q2 revenue and non‑GAAP EPS that beat forecasts, citing solid demand despite recent price adjustments. Stakeholders are watching how rapidly AI data‑center sales can scale toward that larger target.
Pershing Square shares fell roughly 12%‑13% after Bank of America downgraded the stock to Underperform and cut its price target from US$54 to US$38. The bank pointed to a delay in the PSV fund launch and argued that Pershing Square should be valued more in line with peer asset managers. Citi also lowered its rating, noting modest earnings growth and weak portfolio returns.
Top Movers
Valero Energy (VLO) climbed 4.69% following renewed attention on refining capacity constraints and U.S. support for fuel production.
HF Sinclair (DINO) rose 4.33% as refiners reacted to capacity‑expansion news and recent analyst price‑target upgrades.
Oracle (ORCL) advanced 4.23% after announcing a data‑center security working group and receiving fresh recognition for its cloud solutions.
