- Verizon stock traded 2.6% lower intraday on Thursday.
- Dow Jones fell after poor inflation showing in September.
- Hurricane Milton generally appears to be less damaging to Florida than expected.
- September CPI inflation was stronger than economists expected, may reduce chance of rate cut.
Verizon (VZ) stock sailed 2.6% lower on Thursday as US inflation failed to fall as much as expected. Shares of Verizon fell to their lowest level in a month.
The impact of Hurricane Milton is still uncertain on Thursday. After making landfall in Florida on Wednesday, there appears to be lots of flooding and destroyed homes but less statewide damage as expected. Ahead of the storm, Verizon had decided to be more lenient with post-paid services to Florida residents in the two weeks following Milton's landfall.
The Dow Jones Industrial Average (DJIA) has shed 0.36% through the afternoon, while the NASDAQ is down about half that level.
Verizon stock news: Market unhappy with stubborn CPI
The US Consumer Price Index (CPI) for September showed that annual headline inflation was above consensus but arrived slightly below August’s figure. Core CPI, which is more important to the Fed, came in above consensus and August’s number.
Stronger, more stubborn inflation reduced the chances of an interest rate cut by the Federal Reserve (Fed) next month, which sent stock prices lower.
Initial Jobless Claims for last week hit 258K, well above the 225K from the previous week, and this news helped to ameliorate some of the concerns with the inflation print.
Overall, lower interest rates will help companies with large debt profiles like Verizon. On Tuesday, the telecom’s management said they had lined up the $9.6 billion in short-term funding it needs to acquire Frontier Communications.
Verizon stock chart
Verizon stock halted near the $43 level, which had acted as resistance in January and April earlier this year. Below here lies support in the thicket between $40.80 and $42.50 where the 50-day, 100-day and 200-day Simple Moving Averages (SMA) line up.
VZ daily stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD rises on mixed US inflation, jobs data ahead of PPI
The Australian Dollar snaps five straight days of losses and climbs over 0.35% as data showed that inflation in the United States was higher than foreseen, but a soft jobs report tempered the Greenback’s advance. The AUD/USD trades around 0.6738 and bounced off a daily low of 0.6699.
EUR/USD falls back as US CPI inflation data prints above expectations
EUR/USD managed to maintain a finger grip on chart paper north of the 1.0900 handle. Fiber wound up closing lower, but recovered just enough to pull back from a deeper test of the 200-day Exponential Moving Average.
Gold price edges up after US CPI data, yet remains below $2,650
Gold prices recovered some ground on Thursday during the North American session, edging up some 0.67% after a hotter-than-expected US inflation report, which was tempered by soft US jobs data. Nonetheless, recent hawkish comments by a Federal Reserve official capped the precious metal’s advance.
Bitcoin risks worst October in six years following high US inflation data and S&P 500 correlation
Bitcoin and the crypto market trended downward on Thursday as the US Consumer Price Index data for September showed that inflation is rising again, reducing the already slim chances of the Federal Reserve cutting its interest rate by another 50 basis points in November.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.