Friends
As an appetizer for tomorrow’s CPI number, today we got a look at prices at the wholesale level via the Producer Price Index (PPI). Economists were expecting a gain of 0.2% but the number came in lighter at 0.1%. We’ll see if tomorrow’s CPI data confirms the inflation has been tamed narrative. If so, the Fed will basically have a green light to lower rates in September.
As for stocks, today’s muted inflation data was well accepted. For the day, the Dow Jones Industrial Average was up 408 points to close at 39,765. The S&P 500 was up 90 points to close at 5,434. The Nasdaq Composite Index was up 407 points to close at 17,187. Gold was down $1 to trade at $2,502 per ounce, while oil was down $1.83 to trade at $78.23 per barrel WTI.
Bonds rallied on this morning’s inflation data as the 10-year Treasury Note saw its yield fall to 3.85%. But the recovery in stocks from the disruption we saw in early August has been most impressive. Let’s see how the markets respond to tomorrow’s CPI report. Remember, we get a look at retail sales on Thursday. Buckle up.
Have a nice evening everyone.
