Well, the CPI dip didn’t last long. The major indices are higher today, but off the highs, as investors have settled into numbers being a “blip.”  And perhaps it was.  This morning, the Producer Prices (PPI) for final demand declined 0.2% m/m from the initial estimate of -0.1%.  October and November remained unrevised.  Core PPI, ex food and energy, dropped 0.1% compared to the initial flat reading.

Eight of the eleven sectors of the S&P 500 are positive with Industrials leading the way.  Energy is the worst performer.  WTI is below $78 per barrel after the EIA data released show an increase in supply of 12 million barrels.  Gasoline and distillate stockpiles saw outflows, however.  Meanwhile, Natural Gas has fallen to a 3 ½ year low, down another 4% today to $1.61/MMBtu.

Three of our favorite metrics are all positive today.

On the housing front, mortgage applications declined 2.3% last week from the prior week, pressured by an increase in rates. 

Applications:

• Purchase -3%
• Refinance -2%