Wall Street Lunch: Yields Surge On Hot Core CPI

What happened: Core CPI rose more than expected, sending Treasury yields higher. Bank of America fell on weak Q3 profit, Netflix planned about 1,000 layoffs, and Skydance dropped over 15% after a warrant issuance. Key numbers: September CPI rose 0.6% M/M, annual 3.7%. Core CPI rose 0.3% versus 0.2% consensus, annual 2.6%. Gasoline index up 9.1%. BAC fine $1.2B. Why it matters: Traders raised odds of a quarter-point Fed hike this month, with the FOMC call now a coin flip. Janney warned of an outsized negative reaction across asset classes with rates above 5%.

Core CPI rose more than expected, sending Treasury yields higher. Bank of America fell on weak Q3 profit, Netflix planned about 1,000 layoffs, and Skydance dropped over 15% after a warrant issuance.

Traders raised odds of a quarter-point Fed hike this month, with the FOMC call now a coin flip. Janney warned of an outsized negative reaction across asset classes with rates above 5%.