Spirit Airlines Plunges 59.3%

Inflation report is good news for those hoping for more rate cuts
By Newser Editors and Wire Services
Posted Nov 13, 2024 3:30 PM CST
Spirit Airlines Plunges 59.3%
A sign marking the intersection of Broadway and Wall Street is shown in New York's Financial District,   (AP Photo/Peter Morgan, File)

US stocks drifted near their records Wednesday after the latest inflation update boosted hopes that more help for the economy will arrive next month from another cut to interest rates.

  • The S&P 500 rose 1.39 points, or less than 0.1%, to 5,985.38.
  • The Dow Jones Industrial Average rose 47.21 points, or 0.1%, to 43,958.19.
  • The Nasdaq composite fell 50.66 points, or 0.3%, to 19,230.74.
The bond market was also mixed after a report said the inflation that US consumers felt last month was exactly as economists expected. It accelerated to 2.6% from 2.4%, but an underlying measure called "core inflation" did not accelerate. Such core inflation can be a better predictor of future trends, economists say, and the as-expected number boosted expectations for help coming from the Federal Reserve.

On Wall Street, Spirit Airlines' stock lost 59.3%. The airline said in a regulatory filing that it's still trying to work out a deal to renegotiate the repayment of its debt. If it can reach an agreement, the airline said it could wipe out the company's stockholders, but it could also protect employees and customers, the AP reports. The stock is down 92% for the year. Rivian Automotive jumped 13.7% after the electric-vehicle company gave more details about a joint venture it's entering with Volkswagen Group that they had previously announced. The deal's total size could be worth up to $5.8 billion, which is more than the $5 billion the companies had previously said.

"Bang in-line core inflation leaves the Fed on track to cut rates in December," according to Lindsay Rosner, head of multi sector fixed income investing at Goldman Sachs Asset Management. The Fed began cutting interest rates from their two-decade high in September to offer support for the job market, hoping to keep it humming after bringing inflation nearly all the way down to its target of 2%. It cut again earlier this month, and traders now see an improved probability of roughly 82% for a third cut at its meeting next month, according to data from CME Group. (More stock market stories.)

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