Stocks Higher Again After Another Better Than Expected Inflation Report  Image: Bigstock Stocks closed higher again yesterday after another better than expected inflation report. Yesterday's Producer Price Index (PPI) (wholesale inflation) showed headline inflation up 0.1% m/m vs. the consensus for 0.2%. On a y/y basis it was up just 0.1% vs. last month's downwardly revised 0.9% and views for 0.5%. The core rate (ex-food & energy) was up 0.1% m/m as well vs. the consensus for 0.2%. On a y/y basis it was up 2.4% vs. last month's 2.8% and views for the same.
Between yesterday's better than expected PPI report, and Wednesday's better than expected CPI report (retail inflation), traders cheered the news. While it's still unlikely to dissuade the Fed from raising another 25 basis points on July 26, it's possible it could soften their rate outlook for September, or at least have them sound less certain that yet another 25 basis points, after the July meeting, is needed.
In other news, Weekly Jobless Claims fell -12,000 to 237,000 vs. estimates for 249K. Today we'll get Import and Export Prices, and Consumer Sentiment. We'll also get earnings from some of the big banks including JPMorgan Chase, Wells Fargo, BlackRock, Citigroup and State Street to name a handful. Earnings season will pick up momentum next week with 296 companies set to report. And then another 979 the week after that. Earnings season is always an exciting time since stocks typically go up during earnings season. Stocks are having a great week so far. The S&P and Nasdaq both made another new YTD high and close. And with one more day to go, all of the major indexes are on pace to close sharply higher this week. So far, the second half is shaping up to be just as bullish as the first half. So make sure you're taking full advantage of it. Best,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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