This week (Nov. 9–13, US Eastern time), the New York stock market will be driven by US inflation indicators and the results of CoreWeave, the AI infrastructure company at the front line of the data-center buildout, stock.mk.co.kr reported. The benchmark S&P 500 has fallen for four consecutive weeks, and the Nasdaq has dropped 10% from its peak, putting it in a technical correction.
If inflation prints stronger than expected, it could push Treasury yields higher and add pressure to technology stocks already in correction.
October CPI on November 10: Markets Expect a 0.3% Monthly Rise
The Labor Department releases the October consumer price index on Nov. 10. The market expects headline CPI to rise 0.3% from the previous month, with core CPI — which excludes volatile food and energy prices — also seen up 0.3%.
Last week’s October employment report confirmed the labor market remains solid, giving the Federal Reserve more room to focus on curbing inflation rather than labor-market slowdown. The October producer price index on Nov. 13 also matters because some PPI components — airline passenger fares and hospital services among them — feed into the personal consumption expenditures price index, the Fed’s preferred inflation gauge. Headline PPI is expected up 0.4% month over month and core PPI up 0.3%.
Marvin Loh, senior global macro strategist at State Street, said that if high numbers come out and the inflation environment appears to be accelerating, and markets begin pricing in additional tightening, “that’s another factor investors will have to absorb.” Jason Pride, head of investment strategy and research at Glenmede, said that with strong employment data, inflation has become the most important variable in the Fed’s rate outlook, and the October CPI could have a “very significant impact.”
CoreWeave Reports Third-Quarter Results After the Close on November 10
CoreWeave, which buys Nvidia’s high-performance semiconductors in bulk to build data centers and rents computing resources to AI developers, reports third-quarter results after the New York close on Nov. 10. According to Zacks, revenue is expected to reach $3.5 billion, up 159% from a year earlier, with a per-share net loss of $1.17.
Investors will focus less on the growth rate than on cash burn from massive capital spending, debt burdens and funding capacity. CoreWeave guided in August to third-quarter capex of $11.5 billion to $13.5 billion and interest expenses of $860 million to $940 million. The company holds a conference call at 5 p.m. ET on the day of the release.
CoreWeave shares fell 15.44% last week, closing at $46.40 — back to levels last seen in May of last year. According to FINRA, CoreWeave’s 2031 maturity bonds last traded on Nov. 6 at $77.59 per $100 of face value, implying a yield approaching 17%. Morningstar said the key question ahead of the report is whether the company’s borrowing capacity and funding costs have been affected.
Jay Woods, chief market strategist at Freedom Capital Markets, said the recent slide in AI-related stocks could continue “for the next few days, perhaps a week” before bottoming, adding that “now is not the time to jump in with both feet,” though it is a time to start buying gradually because “pinpointing the exact bottom will be very difficult.”
Data-Center Regulation: The “Blue Wave” Overhang on CoreWeave
How management addresses regulatory uncertainty and funding burdens during the earnings call is a key watch point for investors.
Fed Speakers and Other Data Fill the Rest of the Week
The bond market closes on Nov. 11 for Veterans Day; the New York Stock Exchange remains open. Other scheduled items include the New York Fed’s inflation expectations survey and speeches by Michelle Bowman, Austan Goolsbee and Thomas Barkin on Nov. 9; the ADP private payroll report, October CPI and speeches by Christopher Waller, Lorie Logan, Jeffrey Schmid and Bowman on Nov. 10; weekly jobless claims, existing home sales and five Fed speakers including Michael Barr, Mary Daly and John Williams on Nov. 12; and October PPI plus speeches by Bowman, Daly and Philip Jefferson on Nov. 13. Other earnings due this week include Take-Two Interactive, Occidental Petroleum, KKR, NRG Energy, Constellation Energy and Sky Dance on Nov. 9, TransDigm alongside CoreWeave on Nov. 10, and Applied Materials on Nov. 12.
The company reports third-quarter results after the New York close on Nov. 10, with Zacks estimating revenue of $3.5 billion, up 159% year over year, and a per-share loss of $1.17; management will hold a conference call at 5 p.m.
ET that day.
Components such as airline fares and hospital services are used to calculate the PCE price index, the Fed’s preferred inflation measure, so the PPI gives an early read on pipeline price pressure.
The Nasdaq’s 10% decline from its peak is the threshold traders use to define a technical correction, and this week’s inflation prints and CoreWeave’s results will determine whether that slide extends.
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