Input prices are rising

This report is taken from today’s CNBC Daily Open, our new international markets newscast. CNBC Daily Open tells investors everything they need to know, wherever they are. Like what you see? You can subscribe here.

Liquidated shares
US stocks saw a massive sell-off and all major indices closed in the red. In the meantime, US Treasury yields rose for the second consecutive day. Asia-Pacific Markets followed Wall Street lower on Thursday. Australia’s S&P/ASX 200 index fell 1.29%, dragging losses across the region as the country’s trade data came in worse than expected. Japan’s Nikkei 225 index slid 0.64% after eight straight days of gains.

Chinese trade does not resume
China’s trade activity plummets again in August, but not as bad as feared. In US dollars, exports fell 8.8% year on year, against 9.2% expected. Imports fell 7.3%, less than the expected drop of 9%. However, this means that imports have fallen every month this year, while exports have fallen monthly since April.

An Apple-Arm deal
Apple has signed an agreement with Arm which “extends beyond 2040,” Arm said in a Filing with the United States Securities and Exchange Commission. This suggests that Apple has secured access to the Arm Architecture, an instruction set that describes how a chip’s central processor works, for the foreseeable future. This can only increase the enthusiasm around Arm’s upcoming IPO that values ​​him at $52 billion.

In the chaos of the Magic Kingdom
What a private bathroom, Oogie Boogie and a hippo have to do with behind the scenes chaos between Bob Iger and Bob Chapek at Disney? CNBC’s Alex Sherman spoke with more than 25 people who worked closely with Iger and Chapek between 2020 and 2022, revealing the inside story of a CEO succession plan gone awry.

(PRO) Take bites Apple
China has reportedly banned government officials from using Apple’s iPhone and other foreign-branded devices for work purposes. The European Commission has also designated Apple as a “custodian” under its new law. Apple shares fell 3.6% yesterday – could the company face even more headwinds? Listen to what the pros say on these developments.

The roaring flames of 9.1% inflation in June last year have been extinguished, but the last glowing embers are proving difficult to completely extinguish.

Oil prices continue to rise from yesterday’s news supply cuts by Saudi Arabia and Russiaadding to inflationary pressures.

And today we found that the services and manufacturing sectors of the US economy paid higher prices for their inputs in August, according to the price component of the ISM Services index and its manufacturing counterpart. . Moreover, the report showed that the services sector grew faster than expected for its eighth consecutive month of expansion and its highest level since February.

For those worried about the recession, that sounds like good news. But markets turned from the recession to focus on stubborn inflation and the threat of higher interest rates.

Markets ‘seem to be adopting the ‘bad news is good news’ principle, rallying on weak growth data and selling off on strong data – amid fears that too strong data could increase the risk of a further rate hike,” said Chris Hussey of Goldman Sachs. wrote in a Wednesday note.

Indeed, as Treasury yields surged – the 2-year yield once again rose above the 5% level – and November rate hike bets increased, stocks came under pressure. Interest-rate-sensitive technology stocks were particularly hard hit, with Nvidia And Apple losing more than 3% each. (Apple shares were also hurt by a Wall Street Journal report that Chinese government agencies banned staff from using iPhones at work.)

This caused the heavy burden of technology Nasdaq Composite to fall 1.06% for its third consecutive day of losses. THE S&P500 fell by 0.7% and the Dow Jones Industrial Average fell 0.57%.

A roaring fire is dangerous. But more often than not, it’s the embers smoldering in the underbrush that cause the most damage – and fan a forest fire again.