Good Wednesday morning. Welcome to another hour of squawk on the street. I'm Sarah Eisen with Carl

Kintanilla and David Faber live, as always from post nine of the New York Stock Exchange.

Ahead of a big data release, the Fed's preferred inflation number, PCE, will cross in just a moment

due to tomorrow's Thanksgiving holiday. A reminder, markets are

closed tomorrow for the holiday. We've got full team coverage for you. Rick Santelli in Chicago will

have the numbers as they cross. Steve Leasman and Jeffrey's chief market strategist David Zervos will

join us with their reaction and with some contacts. First, though, let's check on the markets as we

await that inflation number to cross.

We've got a mixed picture, S&P down a tenth of 1%.

You do have strength in real estate financials and health care, weakness in technology.

Excuse me.

And that's after some earnings releases, 10% move lower in HP, more than that for Dell.

That inflation data just crossing, let's go to Rick Santelli in Chicago. Hi, Rick. Yes, well, first, let's go through the three income and spending numbers. This is seven-parter for October. On the income side, double expectations. Instead of up three-tenths, we're getting up six-tenths. Up six-tenths equals where we were in March to find a higher one. You have to go to very beginning of the year in January up 1.4. So this is a solid number. If we look at spending also as expected but solid up four tenths of a percent that follows up five tenths of a percent. These numbers have been strong.

Now, if we adjust for inflation and look at the real spending, it's up one-tenth,

up one-tenth, and that follows up four-tenths. Up four-tenths was the second best of the year.

Now, the inflation numbers we have four of them. The first one, of course, is the price index month

over month. And we're expecting a point two. It is a point two. But remember, for the last several

months prior, we've had lower numbers. If you look at where we were in May, we were zero,

then one-tenth, two-tenths, one-tenth in August. So you can see that's been a bit of an uptick. Now, let's take that same headline and go year over year, expect it up 2.3. It comes in at 2.3, but that's not necessarily good news. And the rear-view mirror was 2.1. 2.1 was the best going back to February of 21. 2.3 equals August to find a higher

when you go to the July when it was 2.5. Now, let's look at the core numbers, probably the most

important two numbers we have. If we look at core month over month, it is coming in at three

tenths as expected, same as in the rear view mirror, but once again, if you look

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