{"id":69860,"date":"2023-08-11T09:01:54","date_gmt":"2023-08-11T13:01:54","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=69860"},"modified":"2023-08-11T09:01:54","modified_gmt":"2023-08-11T13:01:54","slug":"coffee-with-greta-wholesale-inflation-surprise","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/08\/11\/coffee-with-greta-wholesale-inflation-surprise\/","title":{"rendered":"Coffee With Greta: Wholesale Inflation Surprise"},"content":{"rendered":"

Register now<\/a> for next week's free Q&A event on LinkedIn with Scott Redler!<\/b><\/p>\n

DJIA Futures: <\/b>-80 (-0.2%)<\/span><\/p>\n

SPX Futures: <\/b>-17 (-0.4%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-107 (-0.7%)<\/span><\/p>\n

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

Futures are falling after the release of hotter-than-expected inflation data.<\/span><\/p>\n

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

Wholesale Inflation Runs Hot<\/span><\/h2>\n

Wholesale inflation pressures rose more than expected in July.\u00a0<\/span><\/p>\n

The Bureau of Labor Statistics\u2019 producer price index rose 0.3% monthly and 0.8% year over year.\u00a0<\/span><\/p>\n

That was higher than economists\u2019 expectations for +0.2% monthly and +0.7% annually.\u00a0<\/span><\/p>\n

The core PPI was also hotter than expected, up 0.3% monthly and 2.4% year over year.\u00a0<\/span><\/p>\n

Economists were expecting the core PPI to rise 0.2% monthly and 2.4% annually.\u00a0<\/span><\/p>\n

The PPI gauges the costs that goods and services producers receive for their products.\u00a0<\/span><\/p>\n

It is a leading indicator for CPI as retailers, restaurants, and other businesses then pass down those costs to consumers in their prices.<\/span><\/p>\n

Yields Jump After PPI<\/span><\/h2>\n

Treasury yields are rising after the release of that hotter-than-expected PPI data.\u00a0<\/span><\/p>\n

The 2-year yield is up 4 basis points to 4.88% while the 10-year yield is up 2 basis points to 4.14%.<\/span><\/p>\n

This week\u2019s inflation data is key in the Fed\u2019s fight against inflation.\u00a0<\/span><\/p>\n

The Central Bank has vowed to be data-dependent at the September meeting with the door open for another 25 basis point rate hike if needed.\u00a0<\/span><\/p>\n

CME Group\u2019s FedWatch Tool currently shows 88.5% of traders expecting the Fed to keep rates unchanged at that meeting.\u00a0<\/span><\/p>\n

Chip Stocks Fall<\/span><\/h2>\n

Chip stocks are continuing to pullback ahead of the open following the Biden Administration\u2019s new investment ban in China.\u00a0<\/span><\/p>\n

The <\/span>VanEck Semiconductor ETF <\/b>(SMH) is down 1.2%.\u00a0<\/span><\/p>\n

Nvidia <\/b>(NVDA) shares are falling 1.4% with <\/span>Advanced Micro Devices <\/b>(AMD) down 1.1%.<\/span><\/p>\n

The President signed an executive order this week to regulate new U.S. investments in China.\u00a0<\/span><\/p>\n

The order targets semiconductors and microelectronics, quantum computing, and certain AI capabilities.\u00a0<\/span><\/p>\n

The restrictions are expected to be implemented next year.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Register now for next week’s free Q&A event on LinkedIn with Scott Redler! DJIA Futures: -80 (-0.2%) SPX Futures: -17 (-0.4%) NASDAQ Futures: -107 (-0.7%) Good morning friends! Futures are falling after the release of hotter-than-expected inflation data. Let\u2019s get right to it! Wholesale Inflation Runs Hot Wholesale inflation pressures rose more than expected in July.\u00a0 The Bureau of Labor Statistics\u2019 producer price index rose 0.3% monthly and 0.8% year over year.\u00a0 That was higher than economists\u2019 expectations for +0.2% monthly and +0.7% annually.\u00a0 The core PPI was also hotter than expected, up 0.3% monthly and 2.4% year over year.\u00a0 Economists were expecting the core PPI to rise 0.2% monthly and 2.4% annually.\u00a0 The PPI gauges the costs that goods and services producers receive for their products.\u00a0 It is a leading indicator for CPI as retailers, restaurants, and other businesses then pass down those costs to consumers in their prices. Yields Jump After PPI Treasury yields are rising after the release of that hotter-than-expected PPI data.\u00a0 The 2-year yield is up 4 basis points to 4.88% while the 10-year yield is up 2 basis points to 4.14%. This week\u2019s inflation data is key in the Fed\u2019s fight against inflation.\u00a0 The Central Bank has vowed to be data-dependent at the September meeting with the door open for another 25 basis point rate hike if needed.\u00a0 CME Group\u2019s FedWatch Tool currently shows 88.5% of traders expecting the Fed to keep rates unchanged at that meeting.\u00a0 Chip Stocks Fall Chip stocks are continuing to pullback ahead of the open following the Biden Administration\u2019s new investment ban in China.\u00a0 The VanEck Semiconductor ETF (SMH) is down 1.2%.\u00a0 Nvidia (NVDA) shares are falling 1.4% with Advanced Micro Devices (AMD) down 1.1%. The President signed an executive order this week to regulate new U.S. investments in China.\u00a0 The order targets semiconductors and microelectronics, quantum computing, and certain AI capabilities.\u00a0 The restrictions are expected to be implemented next year.<\/p>\n","protected":false},"author":41,"featured_media":69863,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-69860","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\/69860","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=69860"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69860\/revisions"}],"predecessor-version":[{"id":69866,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/69860\/revisions\/69866"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/69863"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=69860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=69860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=69860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}