Bigger-Than-Expected Increase In Producer Prices May Weigh On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Friday, 11 August 2023 09:05:09 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( Breaking: Price of Gold & Silver set to EXPLODE in 2023! Read Now... Attention investors and retirement savers...Investment experts and even mainstream news publications are predicting a windfall for gold and silver prices in 2023! This could be the year we see the value of precious metals like gold and silver EXPLODE! You won't want to miss out! [Reserve Your FREE Gold & Silver Kit Today!]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a modestly lower open on Friday, with stocks likely to move to the downside after ending the previous session slightly higher. The futures edged lower after the Labor Department released a report showing producer prices climbed by slightly more than expected in the month of July. The Labor Department said its producer price index for final demand rose by 0.3 percent in July following a revised unchanged reading in June. Economists had expected producer prices to inch up by 0.2 percent compared to the 0.1 percent uptick originally reported for the previous month. The report also showed the annual rate of producer price growth reaccelerated to 0.8 percent in July after slowing to just 0.2 percent in June. The rate of growth was expected to accelerate to 0.7 percent. The bigger than expected increase in producer prices may lead to renewed concerns about the outlook for interest rates following yesterday?s tamer-than-expected consumer price data. Not long after the start of trading, the University of Michigan is scheduled to release its preliminary reading on consumer sentiment in the month of August. The consumer sentiment index is expected to edge down to 71.0 in August are surging to 71.6 in July. The report includes readings on year-ahead and long-run inflation expectations that could impact the outlook for interest rates. After moving sharply higher early in the session, stocks largely offset the rally over the course of the trading day on Thursday. The major averages pulled back well off their highs of the session, ending the day just above the unchanged line. The Dow surged by more than 450 points in early trading but ended the day up just 52.79 points or 0.2 percent at 35,176.15. The Nasdaq edged up 15.96 points or 0.1 percent at 13,737.99, while the S&P 500 crept up 1.12 points or less than a tenth of a percent to 4,468.83. The early rally on Wall Street came after the Labor Department released a report showing the annual rate of consumer price inflation accelerated by slightly less than expected in the month of July. The report said the annual rate of growth by consumer prices accelerated to 3.2 percent in July from 3.0 percent in June, while economists had expected the pace of price growth to accelerate to 3.3 percent. The Labor Department also said its consumer price index rose by 0.2 percent on a monthly basis in July, matching the uptick seen in June as well as expectations. Excluding food and energy prices, core consumer prices also rose by 0.2 percent for the second straight month in July, in line with estimates. Meanwhile, the annual rate of growth by core consumer prices slowed to 4.7 percent in July from 4.8 percent in June. The rate of growth was expected to be unchanged. While the data reinforced expectations the Federal Reserve will leave interest rates unchanged next month, economists suggested "sticky" core inflation could leave the door open for the Fed to resume raising rates in November. "Core inflation stickiness is untangling, but for the Fed to declare victory on inflation, it is imperative that it unwinds at a faster and more decisive pace," said Quincy Krosby, Chief Global Strategist for LPL Financial. She added, "The Fed's dove versus hawk tug-of-war appears now to be predicated on an 'insurance' rate hike, which according to the hawks will help keep inflation expectations anchored. A separate Labor Department report showed first-time claims for U.S. unemployment benefits rose by much more than expected in the week ended August 5th. The report said initial jobless claims climbed to 248,000, an increase of 21,000 from the previous week's unrevised level of 227,000. Economists had expected jobless claims to inch up to 230,000. Despite the pullback by the broader markets, networking stocks saw continued strength, with the NYSE Arca Networking Index climbing by 1.9 percent after ending Wednesday's trading at its lowest closing level in well over two months. Within the networking sector, Infinera (INFN) and Viasat (VSAT) posted standout gains after reporting their quarterly results. Telecom stocks also held on to notable gains, driving the NYSE Arca North American Telecom Index up by 1.0 percent to a three-month closing high. On the other hand, housing stocks came under pressure over the course of the session, dragging the Philadelphia Housing Sector Index down by 1.2 percent. Considerable weakness also emerged among steel stocks, as reflected by the 1.1 percent drop by the NYSE Arca Steel Index. --------------------------------------------------------------- Do you day trade? Trader Alerts streams stocks reaching new highs and lows as well as stocks breaking out of previous volume highs as they happen. It's a powerful tool for day trading ideas. [Learn More / Upgrade]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( Partly reflecting an increase in prices for services, the Labor Department released a report on Friday showing U.S. producer prices climbed by slightly more than expected in the month of July. The Labor Department said its producer price index for final demand rose by 0.3 percent in July following a revised unchanged reading in June. Economists had expected producer prices to inch up by 0.2 percent compared to the 0.1 percent uptick originally reported for the previous month. The report also showed the annual rate of producer price growth reaccelerated to 0.8 percent in July after slowing to just 0.2 percent in June. The rate of growth was expected to accelerate to 0.7 percent. At 10 am ET, the University of Michigan is scheduled to release its preliminary reading on consumer sentiment in the month of August. The consumer sentiment index is expected to edge down to 71.0 in August are surging to 71.6 in July. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential. We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns. [Click here for full details and to join for free.]( --------------------------------------------------------------- Europe European stocks have fallen on Friday as initial optimism over tame U.S. CPI data fizzled out following hawkish comments from a Federal Reserve official. After U.S. inflation readings for July came in lower than expected, San Francisco Fed President Mary Daly said that it was premature to say if the Fed has raised rates enough to bring inflation down to the 2 percent target. China growth concerns and a highly uncertain outlook for the bloc's economic growth and inflation also weighed on sentiment. In economic news, French consumer price inflation eased further in July to the lowest level in nearly one-and-a-half years as estimated, the latest data from the statistical office INSEE showed earlier today. The consumer price index climbed 4.3 percent year-over-year in July, slower than the 4.5 percent gain in June. That was in line with the flash data published on July 27. The British pound has risen and interest-rate hike concerns have returned to the fore after official data showed the U.K. economy logged surprise growth in the second quarter. GDP grew 0.2 percent sequentially in the second quarter, following a 0.1 percent rise in the previous quarter, the Office for National Statistics reported. Economists were looking for stagnation in the second quarter. However, the level of quarterly GDP was 0.2 percent below its pre-coronavirus level in the fourth quarter of 2019. On a yearly basis, GDP rose 0.4 percent in the second quarter, which was bigger than economists' forecast of 0.2 percent. While the U.K.?s FTSE 100 Index has slumped by 1.2 percent, the French CAC 40 Index is down by 1.1 percent and the German DAX Index is down by 0.8 percent. Miners Anglo American, Antofagasta and Glencore have all slumped, tracking lower base metal prices after a profit warning from China's biggest property developer deepened concerns about the health of the property sector. Murray International Trust shares have also fallen. The investment company Thursday reported return before taxation of 38.66 million pounds for the first half, lower than 62.66 million pounds in the same period last year, primarily due to loss on investments. Unilever has also moved to the downside after announcing a voluntary recall of select Knorr Sopa Soup Mix products. German steel producer Salzgitter AG has also slid. The company affirmed its full-year sales guidance after reporting earnings before tax of 242.6 million euros for the first half of the year, significantly lower than 970.5 million euros in the comparable period last year. Meanwhile, Swiss bank major UBS Group AG has jumped. The lender has decided to voluntarily terminate the 9 billion Swiss franc Loss Protection Agreement with the Swiss government, saying it is no longer required. KBC Group, a Belgian insurance company, has also moved higher after reporting an increase in net result for the second quarter and backing its annual income outlook. Bechtle AG, a provider of information technology systems and technology, has also soared after posting better-than-expected pre-tax profit for the second quarter. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks fell on Friday, as growing concerns over China's economy as well as worsening relations between the U.S. and China overshadowed hopes for Fed rate pause. China has accused Washington of blocking its development and warned that new restrictions to limit tech investments in China would hurt global supply chains. Gold lingered near one-month lows as the dollar and bond yields held their ground despite signs of moderating inflation in the world's largest economy. After U.S. inflation readings for July came in lower than expected, San Francisco Fed President Mary Daly said that it was premature to say if the Fed has raised rates enough to bring inflation down to the 2 percent target. Japanese markets were closed due to a public holiday. Chinese shares tumbled, with the Shanghai Composite Index plunging 2.0 percent to 3,189.25 after Country Garden Holdings, China's largest developer by contracted sales between 2017 and 2022, forecast a $7.6 billion net loss in the first half. Hong Kong's Hang Seng Index dropped 0.9 percent to 19,075.19. Alibaba Group Holding advanced 1.5 percent after its quarterly revenue beat estimates. Seoul stocks gave up early gains to end lower, dragged down by battery makes. The Kospi ended down 0.4 percent at 2,591.26. Australian markets ended modestly lower despite outgoing Australian central bank chief Philip Lowe telling lawmakers the worst was over for inflation and interest rate rises. The benchmark S&P ASX 200 Index dipped 0.2 percent to 7,340.10 as China demand concerns weighed on mining and energy stocks. The broader All Ordinaries Index settled 0.2 percent lower at 7,554.20. Across the Tasman, New Zealand's benchmark S&P NZX-50 Index edged up 0.2 percent to 11,836.71 after the release of weak manufacturing data. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are climbing $0.51 to $83.33 a barrel after tumbling $1.58 to $82.82 a barrel on Thursday. Meanwhile, after edging down $1.70 to $1,948.90 an ounce in the previous session, gold futures are inching up $0.50 to $1,949.40 an ounce. On the currency front, the U.S. dollar is trading at 144.69 yen versus the 144.75 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.0981 compared to yesterday?s $1.0981. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49