CPI Preview: Good, Bad, Ugly
CPI Preview: Good, Bad, Ugly: Start a free trial of The Sevens Report.
What’s in Today’s Report:
- CPI Preview: Good, Bad, Ugly
- Chart: 10-Yr Yield Falls to 52-Week Lows
Futures are flat this morning while overseas markets were mixed overnight with Europe underperforming amid soft economic data while Asian shares were mostly higher.
Economically, the August German ZEW Survey saw Current Conditions fall to -77.3 vs. (E) -74.5 and Economic Sentiment drop to 19.2 vs. (E) 34.5 which weighed on stocks and other risk assets.
Domestically, the NFIB Small Business Optimism Index rose to 93.7 vs. (E) 91.7 which eased recession fears and is helping U.S. equity futures relatively outperform ahead of the open.
Looking into today’s session, trader focus will be on the first inflation data of the week with PPI (E: 0.2% m/m, 2.6% y/y) and Core PPI (E: 0.2% m/m, 3.0% y/y) due out ahead of the bell.
There is also one Fed speaker: Bostic (1:15 p.m. ET) and one consumer-focused earnings release: HD (E: $4.55) to watch.
Bottom line, PPI could move markets today if there is a big surprise in the release, but markets are likely to remain in wait-and-see mode as investors await the more important CPI release tomorrow.
Join thousands of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.
