Stocks End Mixed, But All Of The Indexes Poised To Close Higher For The Week Image: Bigstock Stocks closed mixed yesterday with the Dow slightly higher, and the S&P and Nasdaq slightly to modestly lower. All of the indexes opened solidly in the green and then added to those gains shortly thereafter, but slowly gave it all back and then some by day's end. Yesterday's Producer Price Index (PPI) essentially confirmed what the previous day's Consumer Price Index (CPI) said -- that inflation had cooled a bit last month, but does still remain elevated. The PPI report showed inflation dipped -0.5% m/m vs. last month's 1.1% increase and views for 0.3%. On a y/y basis, it came in at 9.8% vs. last month's pace of 11.3% and the consensus for 10.3%. Ex-Food & Energy it was at 7.6% y/y vs. last month's 8.2% and views for 7.8%. And ex-Food, Energy & Trade Services it was at 5.8% y/y vs. last month's 6.4%. While both the PPI and CPI reports were encouraging; going from a 41-year high inflation rate to a near 40-year high inflation rate is not that big of a deal. But it's a start. Given recent comments by the Fed that they are serious about bringing down inflation to the 2% level, it shows they have lots of work to do, as well as plenty more rate hikes. But before the next FOMC Announcement on September 21, we'll get one more Employment Situation report, one more CPI report, and one more PPI report for them to look at. In other news, yesterday's Weekly Jobless Claims rose 14,000 to 262,000 vs. last month's downwardly revised 248K and views for 260K. Today we'll get Import and Export Prices, and Consumer Sentiment. And more earnings with another 197 companies on deck today. (We'll also get another 699 companies reporting next week.) With one more trading day left to go in the week, all of the indexes look poised to close higher for the week, which would make it 4 weeks in a row for the S&P and Nasdaq, and 3 out of 4 weeks for the Dow. Best, Kevin Matras Executive Vice President, Zacks Investment Research |
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