Happy Friday. Its been radio silence from the Bureau of Labor Statistics (BLS), the agency charged with preparing 'official' economic reports on behalf of the federal government, since the government shutdown commenced nearly a month ago. But on Friday, investors got a small treat as the agency released the Consumer Price Index.
The report showed that the CPI and Core CPI rose 3% year-over-year, growing 0.3% and 0.2% month-over-month respectively. That rate of growth was slower than expected, thanks to softer housing and food inflation, which were shown to have grown 0.2% MoM.
That positive print wasn't for them; it was for Social Security recipients. The agency brought back members of the agency to prepare the index, which could then be used to deliver the annual Cost of Living Adjustment (COLA) for Social Security. Still, investors took license with the report, pumping the S&P 500 and Nasdaq to intraday highs.
Friday Reading:.
At midday, the Russell 2000 (+1.57%), Dow (+1.24%), Nasdaq (+1.18%), and S&P 500 (+0.95%) were sitting near their day highs. That's despite a sluggish University of Michigan Consumer Sentiment report, which showed a decline in Americans' views of the economy in October. Meanwhile, the S&P Composite PMI saw a slight improvement.
It might be our last brush with a busy day of data for awhile. Despite promises from the White House that the government shutdown would wrap this week, there's still no end in sight. That means it might be awhile until we hear from the BLS next.
TurboTax Via TheStreet
-- Noah Weidner, Markets Reporter
