Stocks Closed Mixed, Yesterday’s PPI Confirms Inflation Is Moderating

Plus 5 Just-Added Strong Buys Stocks Closed Mixed, Yesterday’s PPI Confirms Inflation Is Moderating [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Closed Mixed, Yesterday’s PPI Confirms Inflation Is Moderating [Stocks Closed Mixed, Yesterday’s PPI Confirms Inflation Is Moderating]Image: Bigstock Stocks closed mixed yesterday with the Dow and the S&P off modestly, while the Nasdaq was up modestly. Yesterday's Producer Price Index (PPI) inflation report came in better than expected. Headline inflation was up 0.2% m/m vs. the consensus for 0.3%. On a y/y basis it came in at 2.3% vs. last month's 2.7% and views for 2.5%. The core rate (ex-food & energy), was also up 0.2% m/m, in line with expectations, while the y/y rate came in at 3.2% vs. last month's pace of 3.4% and estimates for 3.3%. This comes on the heels of Wednesday's better than expected Consumer Price Index (CPI), which showed y/y headline inflation coming in at 4.9% vs. last month's 5.0%, and y/y core inflation at 5.5% vs. last month's 5.6%. Let's also not forget how far we've come. The core CPI last year hit a high of 6.6%, while the core PPI got as high as 8.2%. In other news, Weekly Jobless Claims were up 22,000 at 264K vs. the consensus for 245K. The smoother 4-week moving average, however, came in at 245.25K vs. last month's print of 239.25K. Today, we'll get Import and Export Prices, and Consumer Sentiment. And, of course, more earnings with another 223 companies on deck. Earnings slow down next week with 735 companies set to report. And then 262 the week after that. All in so far, earnings season, once again has come in better than expected. And stocks have responded accordingly. Although, this week, with one more trading day to go, we're seeing an uneven performance so far. The Dow and the S&P are both poised to close lower for the week. But the S&P is the closest to getting into the green. And it won't take much to do so. The Nasdaq, however, is poised to close higher. If so, that would make it their third up week in a row. They've had an excellent 3 weeks so far, and even exited their bear market on Monday. Since their bear market low close last year, they are up 20.71%. And from their newly begun bull market, they are up 0.58%. The other indexes (Dow and the S&P), are also up double-digits from last year's low close (15.96% and 15.48% respectively). And with inflation on the decline, interest rates looking like they are on pause, personal incomes hovering near all-time highs, and the economy, while slowing, continuing to grow, it looks like there's a lot more upside to go before the year is up. Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Look Inside All Zacks' Private Portfolios. 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