CNBC anchor Becky Quick was stunned by the market reaction as Rick Santelli read off new inflation numbers, exclaiming, “Wow, Rick! That was pretty unbelievable!”
The Bureau of Labor Statistics published its CPI report on Thursday morning, which showed better-than-expected (but still increasing) inflation numbers:
- The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in October on a seasonally adjusted basis, the same increase as in September, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 7.7 percent before seasonal adjustment.
- The index for all items less food and energy rose 0.3 percent in October after rising 0.6 percent in September. The indexes for shelter, motor vehicle insurance, recreation, new vehicles, and personal care were among those that increased over the month. Indexes which declined in October included the used cars and trucks, medical care, apparel, and airline fares indexes.
- The all items index increased 7.7 percent for the 12 months ending October; this was the smallest 12-month increase since the period ending January 2022. The all items less food and energy index rose 6.3 percent over the last 12 months.
On Thursday’s edition of CNBC’s Squawk Box, Santelli read off the numbers, and as he did, the onscreen graphics displayed the market’s reaction to the news. When Santelli finished, Quick remarked on the reaction to the news:
BECKY QUICK: Wow,
Rick! While you were talking, that was pretty unbelievable! Just to watch the Dow futures. I think we had on the chart the whole time. Again, right before this number, the futures for the Dow up by 50 points. Now they’re up by almost 650, and it took off immediately. I don’t know if we can take a look also at the ten year just to see what was happening with that. Rick, you were busy reading the headlines on some of these things, but what are your thoughts about this movement that we’ve seen it? Wow! The ten year note falling below 4%.RICK SANTELLI: Yeah I’d tell you the ten year note below 4% is huge psychologically obviously. But I think we get some good insight into the trading community as to what they consider an easing with respect to inflation. So these numbers might look a bit on the warm side just in general, but watch the equities, watch the fixed income markets. I think it screams volumes that we are on the right path and investors are going to be piling in if we continue to see these trade.
Watch above via CNBC’s Squawk Box.