Stocks Closed Modestly Higher, Market Awaits This Morning's PPI Inflation Report Image: Bigstock Stocks closed modestly higher yesterday, but well off their intraday highs. Yesterday's Consumer Price Index (CPI) inflation report came in better than expected, and that lifted stocks at the open. But after hitting their intraday highs shortly thereafter, they spent the rest of the day paring back those gains, even turning negative, before finishing with modest green arrows by the close. The CPI report showed headline inflation up 0.2% m/m as expected, and in line with last month's pace. On a y/y basis it was up 3.2%, which was better than the expected 3.3%, although, it was up from last month's 3.0%. The core rate (ex-food & energy) was also up 0.2% m/m, just like last month, and the consensus. The y/y rate actually ticked down to 4.7% vs. last month's 4.8% and views for the same. The slightly better than expected numbers were cheered at the outset. But was likely not enough to dissuade the Fed from raising rates another quarter point in September. Additionally, we still have this morning's Producer Price Index (PPI) inflation report to get thru. And nobody wanted to get too far ahead of themselves until that report comes out. The PPI is expected to show the headline number up 0.2% m/m (up from last month's pace of 0.1%), while the y/y rate is expected to be up 0.7% vs. last month's 0.1%. The core rate is also expected to be up 0.2% m/m, the same as last month's pace. While the y/y rate is expected to come in at 2.3% vs. last month's 2.4%. That report comes out at 8:30 AM ET. In other news, yesterday's Weekly Jobless Claims rose by 21,000 to 248K vs. the consensus for 229K. Although, the 4-week moving average only increased to 231K vs. last week's 228.25K. Besides this morning's PPI report, we'll also get Consumer Credit. And with oil back on the move, people will be watching the Baker Hughes Rig Count report as well. And of course, more earnings with another 202 companies on deck to report today. But the main event will be this morning's inflation report. Could be another busy day. Best, Kevin Matras Executive Vice President, Zacks Investment Research |
Post a Comment
Post a Comment