Stock Market Era |OT3| Nobody expects the Spanish Inflation!
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Producer Prices Fall as Inflation Continues to Slow
December's producer price index slumped, signaling that inflation continues to cool. But is it cooling enough for the Federal Reserve?
Headline PPI fell 6.2% year-over-year in December, down from 7.3% in November and below analyst forecasts of 6.8%. It dropped 0.5% in December from November, down from an increase of 0.2% and below forecasts for a decline of 0.1%.
Core PPI, which strips out food and energy, was also weaker. It rose 0.1% month over month, down from 0.2% in November and meeting economist forecasts, while the 5.5% year-over-year decline, was down from 6.2% and in line with forecasts.
The weaker-than-expected reading is another sign that the Fed can ease up on the right hikes a bit in the months ahead. As a result, the reading helped push Nasdaq CompositeCOMP +0.14% futures, which benefit from lower inflation and lower interest rates, up 0.6%, while S&P 500SPX –0.20% futures have risen 0.3%, and the Dow Jones Industrial AverageDJIA –1.14% has ticked up 0.1%.
Still, it's not time to get too excited. "A sustained deceleration in recent months supports market pricing for another step down in the pace of interest rate increases going forward," writes High Frequency Economics' Rubeela Farooqi. "However, with prices still rising at a pace that is well above target, rates will need to move higher, to a more restrictive stance."
www.barrons.com
December's producer price index slumped, signaling that inflation continues to cool. But is it cooling enough for the Federal Reserve?
Headline PPI fell 6.2% year-over-year in December, down from 7.3% in November and below analyst forecasts of 6.8%. It dropped 0.5% in December from November, down from an increase of 0.2% and below forecasts for a decline of 0.1%.
Core PPI, which strips out food and energy, was also weaker. It rose 0.1% month over month, down from 0.2% in November and meeting economist forecasts, while the 5.5% year-over-year decline, was down from 6.2% and in line with forecasts.
The weaker-than-expected reading is another sign that the Fed can ease up on the right hikes a bit in the months ahead. As a result, the reading helped push Nasdaq CompositeCOMP +0.14% futures, which benefit from lower inflation and lower interest rates, up 0.6%, while S&P 500SPX –0.20% futures have risen 0.3%, and the Dow Jones Industrial AverageDJIA –1.14% has ticked up 0.1%.
Still, it's not time to get too excited. "A sustained deceleration in recent months supports market pricing for another step down in the pace of interest rate increases going forward," writes High Frequency Economics' Rubeela Farooqi. "However, with prices still rising at a pace that is well above target, rates will need to move higher, to a more restrictive stance."
Producer Prices Fall as Inflation Continues to Cool
The decline in PPI continues a trend that could see smaller rate increases in the months ahead.
It was a good report. Really seems like we are in deflation already, which is great. I think we might actually see the Fed pause hikes after this and take more of a wait and see approach for a bit.
Is it finally happening? Second reject from the $400 resistance. 🥵
You don't get a crazy rally like that without pulling back a little. There was some Fed talk earlier, Bullard still wants to go hard on rates. https://www.marketwatch.com/story/f...-on-getting-interest-rates-over-5-11674055650
My hunch is the market makers didn't expect PPI to be so good, now they need to reposition their options for a bit of a rally. Thus they'll drive the market down for a bit so they can get out of their naked shorts for less money and set up differently.
Yeah... Ill-informed opinion here, but every time there has been positive inflation news it's usually the day after that everything rallies. The day of everything is down.
Maybe there's stats to back this up but it's what I've noticed.
I mean look at that. Both the trendline and the 200 day. I guess we will find out shortly. Not that long until Feb 1st. I reckon the next FOMC will force a direction one way or the other.
View: https://twitter.com/tEconomics/status/1615714527085035525?s=20&t=SVBhGCVg_yoEV9-GGmnivw
This pretty awful for the past two months
Aurizen timed $COIN pretty nicely during that market consolidation last month. It's up quite bigly since its 52 week low on 1/6 😎
Thats what I'm proud of. it was $33 now it's $50.
HA!!!
Oh indeed. My timing was a bit off in that things did go lower but I still haven't bought back in 😅
I'm back to buying. I've lowered my margin account enough and will pay the remaining after I get my bonus.
I don't care about timing the bottom the exactly. I'm going start slowing DCAing into names that are already at great prices. If there further drops, I will just buy more. Never sell.
Buy. Borrow. Die.
I don't care about timing the bottom the exactly. I'm going start slowing DCAing into names that are already at great prices. If there further drops, I will just buy more. Never sell.
Buy. Borrow. Die.
Looks like today might end up wiping out all the gains my portfolio has made since the beginning of the year. Lovely.
i will start buying back around 23-24. but it might shoot pass that and hit close to 30 due earnings coming up
obviously you can't time it exact, but buying around the mid to high 20's on the VIX then selling at 18-19 has been amazing for me in this market
I think we are in for a rough year, or at least the first half of the year. Any rallies will likely be short lived until the Fed reverses course, which could be quite some time yet.
BUT on the bright side, a course reversal is coming, its just a matter of when, not if.
Yep - I was definitely expecting a rough go of it this year.
I got some inheritance money for Christmas this year (posted about it in here a couple months back), and I put a chunk of it in some Vanguard and Schwab ETFs and mutual funds. My expectation was that I was likely to lose some money on it this year, but it's a long-term investment, so it would almost certainly pay off in the long run.
Well, the year got off to a surprisingly solid start and I was pretty thrilled - but now things are coming back down to earth. Just how this works, I guess!
Damn $ENPH is having a TERRIBLE day. Down 10% goddamn! Lower than that period of consolidation last month.
It's been holding 3900+ pretty well so far. Looking real good actually.
It's been holding 3900+ pretty well so far. Looking real good actually.
Let the market take in $NFLX earnings + news~
Huh...I really thought people would cut Netflix during these hard times 🤔
View: https://twitter.com/LiveSquawk/status/1616180034821046280?s=20&t=bf0D41t00n9Sn__fGWKs0w
I guess people called the death of netflix prematurely
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