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Afternoon Note

Producer Price Index Rises

By Charles Payne, CEO & Principal Analyst
4/9/2021 1:50 PM

It’s been a rather muted session.  Investors do not seem too motivated to sell. And according to a report from Bank of America, the Flow Show report, globally, money has been flowing into equities.  In the past 5 months, $576 billion made its way into global equities, the highest level in 12 years, exceeding the previous high of $425 billion. 

PPI tried to derail the market when it was released. Producer Price Index for final demand rose 1% in March, topping estimates for +0.5%.  The cost of gasoline, diesel fuel, industrial chemicals, processed poultry, residential electric power, and steel mill products were the primary contributors to the increase. Year over year, it gained 4.2%, which is the highest annual read since September 2011. Excluding food and energy, it rose 0.7% , way above the consensus of +0.2%, and + 3.1% year over year, up from 2.5% in the prior month. The large increases in some of the indexes brings the inflation topic back into focus.

Key month over month standouts:

Financials, Consumer Discretionary and Technology are the best performers on the S&P 500, while Energy is the worst performer.  Baker Hughes shows that US rig count remained the same as the prior week at 337. 

FAANG is mixed with Amazon (AMZN) the best performer of the group, up 1.8%, as the workers in Alabama plant resoundingly voted against unionizing.  Facebook (FB) and Netflix (NFLX) are the laggards.

S&P 500 Index

+0.21%

 

Communication Services XLC

 

-0.51%

Consumer Discretionary XLY

+0.42%

 

Consumer Staples XLP

 

-0.59%

Energy XLE

 

-0.89%

Financials XLF

+0.44%

 

Health Care XLV

+0.33%

 

Industrials XLI

+0.30%

 

Materials XLB

+0.00%

 

Real Estate XLRE

 

-0.10%

Technology XLK

+0.37%

 

Utilities XLU

 

-0.05%

 

Breadth is mixed with advancers leading decliners on the NYSE, but it is lagging on the Nasdaq.  Interesting, the reverse is true for the up volume versus the down.

Market Breadth

NYSE

NASDAQ

Advancing

1,629

1,634

Declining

1,581

2,370

52 Week High

215

135

52 Week Low

6

33

Up Volume

843.89M

1.18B

Down Volume

970.70M

1.02B

Have a great weekend.  Be safe and stay well.


 

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