Inflation Slowdown Fuels Early-Session Rally P&G Tops Estimates While GM Trims Hundreds of Salaried Jobs

Stocks moved up at the open on Friday, October 24, with major indices tracking higher as investors were motivated by a key inflation report. The Dow Jones Industrial Average edged up 0.1%, the S&P 500 rose 0.3%, and the tech-heavy Nasdaq Composite added 0.5% in premarket activity. In the commodities space, prices were volatile as crude oil surged by a notable 7.63% over the last five days, trading at $61.62, a rally fueled by new US sanctions on Russian producers that sent WTI crude more than $5 higher from its recent low. Conversely, Gold was under pressure, declining 4.31% over the same five-day period to a price of $4083.8.

The main benchmarks appeared poised for an immediate rally after the release of the Consumer Price Index (CPI). The reaction suggested investors are beginning to price in a higher likelihood of a 25-basis-point rate cut and a potentially more dovish message on the Fed’s balance sheet runoff.

Inflation Cools, but Sticky Services Persist

According to the U.S. Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent on a seasonally adjusted basis in September, a moderation from the 0.4 percent rise recorded in August. The all-items index rose 3.0 percent over the last 12 months, matching the increase in the all-items less food and energy index, which also rose 3.0 percent year-over-year. The index for all items less food and energy, often referred to as core CPI, rose 0.2 percent in September, decelerating after rising 0.3 percent in each of the two preceding months.

The overall report was viewed as "encouraging" as it is "signaling that price growth is still positive and broad but not re-accelerating".

However, the report underscored the persistent stickiness of services inflation, particularly components tied to housing, care, and labor. Shelter costs, a major component of the index, rose 3.6 percent year-over-year and were up 0.2 percent on a one-month basis. Costs for energy services were up 11.7 percent year-over-year. Furthermore, a sharp rise in care costs showed that childcare and elder care were "flashing red," with day care and preschool costs jumping 1.7 percent month-over-month and rising 5.2 percent year-over-year.

In contrast, goods inflation appears to be cooling, with core goods up just 1.5 percent year-over-year and 0.4 percent month-over-month. The largest factor in the overall monthly CPI increase was gasoline, which rose 4.1 percent in September.

P&G Maintains Guidance Following Solid Quarter

In corporate news, The Procter & Gamble Company (P&G) reported first-quarter fiscal year 2026 results that met expectations. The consumer goods giant posted net sales of $22.4 billion, a three percent increase versus the prior year. Organic sales for the quarter rose two percent, driven by a one percent increase from higher pricing and a one percent increase from a favorable mix, while organic volume had a neutral impact.

Core earnings per share (EPS) for the quarter were $1.99, an increase of three percent versus the prior year. Diluted EPS was $1.95, an increase of 21%.

"Our organic sales growth, earnings and cash results in the first quarter reflect strong execution of our integrated strategy,” said Jon Moeller, Chairman of the Board, President and Chief Executive Officer. Mr. Moeller added that these results "keep us on track to deliver within our guidance ranges on all key financial metrics for the fiscal year in a challenging consumer and geopolitical environment". The company maintained its fiscal year sales, EPS growth, and cash return guidance.

GM Cuts Hundreds of Salaried Jobs

Meanwhile, General Motors Co. announced it cut "hundreds of jobs" on Friday, a move that came just days after the automaker raised its profit guidance for the year. Bloomberg reports the company laid off more than 200 salaried staff, primarily at its Tech Center in Warren, Michigan.

The company is streamlining its operations to boost profits, as automakers attempt to cope with changing policies, such as tariffs, which have added costs that higher prices have not fully offset.