📈 CPI Strong, PPI Next

We're not quite out of the woods yet. Here's why.

CPI Results

Today’s CPI numbers were strong, and the market immediately reacted positively to it.

Ultimately it was a good day for the market, though we didn’t see any action that would suggest the bottom is clearly in.

You can see that CPI came in lower than consensus across the board, which is good news.

It provided some relief to traders who were concerned about the potential impact of tariffs on inflation.

PPI This Morning

At 8:30 AM this morning, we go again with PPI data.

Remember, think of CPI as what consumers pay, while PPI is what producers pay.

Therefore, these numbers will be extremely important to understand if corporate margins are expanding or contracting.

We clearly saw some hesitancy yesterday, with margin-focused businesses like Walmart and Target selling off significantly.

The numbers you are looking to beat are below.

A good number should provide some relief to these retail names that sold off in anticipation of the number.

For more on how to interpret CPI, the Russia/Ukraine news that came out yesterday, and whether the market has bottomed or not, watch this video: