High November CPI Data Slams Futures

Includes: DIA, IEF, QQQ, SPY
by: Jonathan Liss

U.S. futures were lower Friday morning, dropping off immediately after the release of November CPI data (8:30 AM ET). The Dow was down 58 points to 13,540, the S&P 500 fell 9.5 points to 1,489 and the Nasdaq 100 was lower by 14 to 2,100 as of 8:32 AM ET. CPI rose 0.8% in November, while core CPI climbed 0.3%. Consensus economist estimates were for a CPI reading of 0.6% growth coupled with 0.2% growth in core CPI (which leaves out volatile food and crude oil prices). A bit later (9:15 AM ET), November industrial production numbers are due out with a consensus growth estimate of 0.2%.

European markets were slightly lower in mid-day trading Friday (full story) as food prices pushed euro area inflation to its highest level since 2001. Asian markets closed lower Friday, with the exception of Shanghai which gained 1.01% following sharp losses Thursday (full story).

Citigroup announced a plan to bail out seven affiliated SIVs and take $49 billion in assets onto its balance sheet to avoid a fire sale of the SIVs' assets (full story). Credit rating agency Moody's responded by lowering Citigroup's credit rating to Aa3, the fourth-highest level.

On the earnings front, Leap Wireless (LEAP) climbed nearly 10% after it topped consensus earnings estimates (full story). Novell (NASDAQ:NOVL) lost more than 9% as its guidance disappointed investors despite beating estimates in its recently ended quarter (full story).

Gold continued lower Friday after dropping below $800 in Thursday trading while oil was slightly higher to $92.36/bbl. The yield on 10-year treasury notes rose to 4.21% as the price fell slightly to 100-10+.