Inflation remains in check, as the Producer Price Index (PPI) for final demand was unchanged in July. Core PPI, excluding food and energy, increased 0.1%. Both numbers were less than consensus, 0.3% for PPI and 0.2% for core PPI. Year-over-year, PPI was up 3.3% compared to 3.4%, core PPI was up 2.7% versus 2.8% in June.
Bond yields eased on the news that inflation is abating, the yield on the 10-Year Treasury declined 0.03 basis points (bps) to 2.94%.
The prospect of lower yields has home builders trading higher and banks trading lower. The KBW Bank Index, BKX, is lower by 0.63%, while the Home Construction Etf, ITB, is higher by 0.75%. Telecom continues to power higher, with the Telecom Etf, IYZ, higher by 1.27% led by CenturyLink (CTL), which is up over 12% after reporting earnings. The SPDR S&P Retail Etf (XRT) is testing levels not seen since 2015. Zumiez (ZUMZ) reported stellar earnings and is trading higher by over 6%. Comparable same store sales increased 9.1% at ZUMZ.
Equity indexes are hovering near the flat line:
|Great news hope keep going|
Steve Letterle on 8/9/2018 4:52:21 PM
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