{"id":60360,"date":"2022-03-15T08:53:44","date_gmt":"2022-03-15T12:53:44","guid":{"rendered":"https:\/\/www.t3live.com\/blog\/?p=60360"},"modified":"2022-03-15T08:53:44","modified_gmt":"2022-03-15T12:53:44","slug":"coffee-with-greta-double-digit-wholesale-inflation","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/03\/15\/coffee-with-greta-double-digit-wholesale-inflation\/","title":{"rendered":"Coffee With Greta: Wholesale Inflation Surges 10%"},"content":{"rendered":"

Editor's Note:<\/strong> Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here<\/span><\/a><\/strong>.<\/p>\n

********<\/p>\n

DJIA Futures:\u00a0<\/b>+172 (+0.5%)<\/p>\n

SPX Futures:\u00a0<\/b>+28 (+0.7%)<\/p>\n

NASDAQ Futures:\u00a0<\/b>+130 (+1%)<\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are higher on day one of the Fed\u2019s two-day policy meeting.\u00a0<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Wholesale Inflation Hits Double Digits<\/strong><\/h2>\n

The Bureau of Labor Statistics Producer Price Index shows prices surged 10% year-over-year in February.\u00a0<\/span><\/p>\n

That was in line with expectations and is the second straight month of double digit wholesale inflation after January was revised higher.<\/span><\/p>\n

On a monthly basis, prices rose 0.8% vs 0.9% expected.<\/span><\/p>\n

Nearly 40% of that gain was due to the gasoline index, which jumped 14.8% year-over-year.<\/span><\/p>\n

The Core PPI, which excludes food, energy, and trade services, jumped 0.2% monthly and 6.6% annually.<\/span><\/p>\n

PPI is a forward indicator for consumer prices as manufacturers and service providers pass-down higher costs.<\/span><\/p>\n

This new inflation data comes on day one of the Fed\u2019s two-day policy meeting.\u00a0<\/span><\/p>\n

The central bank is expected to announce its first rate hike since 2018 on Wednesday and provide more clarity on its plans to reduce the size of its balance sheet.<\/span><\/p>\n

Oil Prices Slide to 2-Week Low\u00a0<\/strong><\/h2>\n

Oil prices are continuing to tumble, hitting a new two-week low.<\/span><\/p>\n

West Texas Intermediate crude futures are down more than 8% to just under $95 per barrel with Brent crude futures falling nearly 8% to under $99 per barrel.\u00a0<\/span><\/p>\n

The two-day drop in prices comes amid continued talks between Russia and Ukraine and as new Covid lockdowns in China threaten to weaken global demand.\u00a0<\/span><\/p>\n

China is the largest importer of crude oil in the world.<\/span><\/p>\n

Russia, Ukraine Continue Ceasefire Negotiations<\/strong><\/h2>\n

Ukraine\u2019s capital city of Kyiv announced a 35-hour curfew will begin tonight after several missile strikes on residential buildings in the city.\u00a0<\/span><\/p>\n

A fifth round of talks between Ukrainian and Russian officials is set to take place today after the fourth round failed on Monday.\u00a0<\/span><\/p>\n

Several NATO prime ministers are now heading to Ukraine to meet with the president and prime minister.\u00a0<\/span><\/p>\n

The PMs of Poland, Slovenia, and the Czech Republic will visit Kyiv today.\u00a0<\/span><\/p>\n

The group said, \u201cThe purpose of the visit is to confirm the unequivocal support of the entire European Union for the sovereignty and independence of Ukraine.\u201d<\/span><\/p>\n

The EU and U.K. both rejected Russia\u2019s \u201cmost favored nation\u201d trading status today, allowing harsh tariffs to be imposed on Russian goods.\u00a0<\/span><\/p>\n

Britain is also set to ban exports of high-end luxury goods to Russia.<\/span><\/p>\n

The EU approved new sanctions today banning transactions with state-owned businesses, a ban of Russian steel imports, a ban on new investments in Russia\u2019s energy security, and a ban on luxury goods exports to Russia.<\/span><\/p>\n

Traders Sell Risk, Treasury Yields Spike<\/strong><\/h2>\n

Tech stocks sold off sharply on Monday as traders reevaluate their risk positions with the impending Fed rate hike.\u00a0<\/span><\/p>\n

The <\/span>Nasdaq <\/b>was the largest loser of the session, closing 2% lower on Monday.\u00a0<\/span><\/p>\n

High-growth tech stocks took the brunt of that drop.\u00a0<\/span><\/p>\n

Cathie Wood\u2019s <\/span>Ark Innovation ETF <\/b>(ARKK) plunged 6% and is now down nearly 45% YTD. <\/span>
\n<\/span>
\n<\/span>ARKK shares are up 1.3% ahead of the open.\u00a0<\/span><\/p>\n

Netflix <\/b>(NFLX) shares have officially given up all of their pandemic gains.<\/span><\/p>\n

The streaming giant closed 2.7% lower Monday at $331.01 after notching out a new 52-week low at $329.82 earlier in the session.<\/span><\/p>\n

But NFLX shares are rebounding in premarket trade, up 1.7%.<\/span><\/p>\n

On the other side of that tech sell-off, Treasury yields popped.<\/span><\/p>\n

The 10-year yield hit a high of 2.145% Monday, its highest since July 2019.\u00a0<\/span><\/p>\n

Currently the yield on the 10-year note is down 3 basis points to 2.11%.<\/span><\/p>\n

Airlines Raise Outlook<\/strong><\/h2>\n

Shares of the major airlines are rallying ahead of the open after hiking their revenue outlooks.<\/span><\/p>\n

Delta <\/b>(DAL) shares are up 5.9%, <\/span>United <\/b>(UAL) is rallying 4.9%, and <\/span>Southwest <\/b>(LUV) shares are rising 4%.<\/span><\/p>\n

All three companies said air travel is rebounding from the Omicron slump and they expect travel demand to be stronger than previously forecast this year.\u00a0\u00a0<\/span><\/p>\n

Tesla Hikes Car Prices<\/strong><\/h2>\n

Tesla <\/b>(TSLA) shares are flat in premarket trade after the electric automaker announced a price hike for its cars.\u00a0<\/span><\/p>\n

The company raised prices on all models in the U.S. and the Model 3 and Model Y in China.\u00a0<\/span><\/p>\n

This is the second increase in just a week.\u00a0<\/span><\/p>\n

Tesla did not give a reason for the price hike but the decision comes after CEO Elon Musk warned about inflation pressures over the weekend.\u00a0<\/span><\/p>\n

\n

Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics<\/p>\n

\u2014 Elon Musk (@elonmusk) March 14, 2022<\/a><\/p><\/blockquote>\n

In a tweet Sunday he said, \u201cTesla & SPaceX are seeing significant recent inflation pressure in raw materials & logistics\u201d.<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • Lyft <\/b>(LYFT) followed <\/span>Uber\u2019s <\/b>(UBER) lead in adding a fuel surcharge for riders as gas prices remain at record highs. Lyft did not disclose how much that temporary charge will be but Uber\u2019s fee will range between $0.45 to $0.55 per ride. The companies say that extra charge will go directly to drivers.\u00a0<\/span><\/li>\n
  • Shares of the major vaccine makers popped on news of renewed Covid lockdowns in China Monday. <\/span>Pfizer <\/b>(PFE) shares jumped 3.9%, while <\/span>BioNTech <\/b>(BNTX) surged 12%, and <\/span>Moderna <\/b>(MRNA) rallied 8.6%. Shenzhen became the first city in China to be placed under a full lockdown with only essential businesses able to be open. That closure is prompting fears of more supply chain issues and worsening inflation as the city is a global tech hub and the fourth largest port in the world.<\/span><\/li>\n<\/ul>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures:\u00a0+172 (+0.5%) SPX Futures:\u00a0+28 (+0.7%) NASDAQ Futures:\u00a0+130 (+1%) Good morning friends! Futures are higher on day one of the Fed\u2019s two-day policy meeting.\u00a0 Let\u2019s get right to it! Wholesale Inflation Hits Double Digits The Bureau of Labor Statistics Producer Price Index shows prices surged 10% year-over-year in February.\u00a0 That was in line with expectations and is the second straight month of double digit wholesale inflation after January was revised higher. On a monthly basis, prices rose 0.8% vs 0.9% expected. Nearly 40% of that gain was due to the gasoline index, which jumped 14.8% year-over-year. The Core PPI, which excludes food, energy, and trade services, jumped 0.2% monthly and 6.6% annually. PPI is a forward indicator for consumer prices as manufacturers and service providers pass-down higher costs. This new inflation data comes on day one of the Fed\u2019s two-day policy meeting.\u00a0 The central bank is expected to announce its first rate hike since 2018 on Wednesday and provide more clarity on its plans to reduce the size of its balance sheet. Oil Prices Slide to 2-Week Low\u00a0 Oil prices are continuing to tumble, hitting a new two-week low. West Texas Intermediate crude futures are down more than 8% to just under $95 per barrel with Brent crude futures falling nearly 8% to under $99 per barrel.\u00a0 The two-day drop in prices comes amid continued talks between Russia and Ukraine and as new Covid lockdowns in China threaten to weaken global demand.\u00a0 China is the largest importer of crude oil in the world. Russia, Ukraine Continue Ceasefire Negotiations Ukraine\u2019s capital city of Kyiv announced a 35-hour curfew will begin tonight after several missile strikes on residential buildings in the city.\u00a0 A fifth round of talks between Ukrainian and Russian officials is set to take place today after the fourth round failed on Monday.\u00a0 Several NATO prime ministers are now heading to Ukraine to meet with the president and prime minister.\u00a0 The PMs of Poland, Slovenia, and the Czech Republic will visit Kyiv today.\u00a0 The group said, \u201cThe purpose of the visit is to confirm the unequivocal support of the entire European Union for the sovereignty and independence of Ukraine.\u201d The EU and U.K. both rejected Russia\u2019s \u201cmost favored nation\u201d trading status today, allowing harsh tariffs to be imposed on Russian goods.\u00a0 Britain is also set to ban exports of high-end luxury goods to Russia. The EU approved new sanctions today banning transactions with state-owned businesses, a ban of Russian steel imports, a ban on new investments in Russia\u2019s energy security, and a ban on luxury goods exports to Russia. Traders Sell Risk, Treasury Yields Spike Tech stocks sold off sharply on Monday as traders reevaluate their risk positions with the impending Fed rate hike.\u00a0 The Nasdaq was the largest loser of the session, closing 2% lower on Monday.\u00a0 High-growth tech stocks took the brunt of that drop.\u00a0 Cathie Wood\u2019s Ark Innovation ETF (ARKK) plunged 6% and is now down nearly 45% YTD. ARKK shares are up 1.3% ahead of the open.\u00a0 Netflix (NFLX) shares have officially given up all of their pandemic gains. The streaming giant closed 2.7% lower Monday at $331.01 after notching out a new 52-week low at $329.82 earlier in the session. But NFLX shares are rebounding in premarket trade, up 1.7%. On the other side of that tech sell-off, Treasury yields popped. The 10-year yield hit a high of 2.145% Monday, its highest since July 2019.\u00a0 Currently the yield on the 10-year note is down 3 basis points to 2.11%. Airlines Raise Outlook Shares of the major airlines are rallying ahead of the open after hiking their revenue outlooks. Delta (DAL) shares are up 5.9%, United (UAL) is rallying 4.9%, and Southwest (LUV) shares are rising 4%. All three companies said air travel is rebounding from the Omicron slump and they expect travel demand to be stronger than previously forecast this year.\u00a0\u00a0 Tesla Hikes Car Prices Tesla (TSLA) shares are flat in premarket trade after the electric automaker announced a price hike for its cars.\u00a0 The company raised prices on all models in the U.S. and the Model 3 and Model Y in China.\u00a0 This is the second increase in just a week.\u00a0 Tesla did not give a reason for the price hike but the decision comes after CEO Elon Musk warned about inflation pressures over the weekend.\u00a0 Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics \u2014 Elon Musk (@elonmusk) March 14, 2022 In a tweet Sunday he said, \u201cTesla & SPaceX are seeing significant recent inflation pressure in raw materials & logistics\u201d. In Case You Missed It Lyft (LYFT) followed Uber\u2019s (UBER) lead in adding a fuel surcharge for riders as gas prices remain at record highs. Lyft did not disclose how much that temporary charge will be but Uber\u2019s fee will range between $0.45 to $0.55 per ride. The companies say that extra charge will go directly to drivers.\u00a0 Shares of the major vaccine makers popped on news of renewed Covid lockdowns in China Monday. Pfizer (PFE) shares jumped 3.9%, while BioNTech (BNTX) surged 12%, and Moderna (MRNA) rallied 8.6%. Shenzhen became the first city in China to be placed under a full lockdown with only essential businesses able to be open. That closure is prompting fears of more supply chain issues and worsening inflation as the city is a global tech hub and the fourth largest port in the world.  <\/p>\n","protected":false},"author":41,"featured_media":60365,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-60360","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/60360","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=60360"}],"version-history":[{"count":6,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/60360\/revisions"}],"predecessor-version":[{"id":60367,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/60360\/revisions\/60367"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/60365"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=60360"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=60360"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=60360"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}