Stocks Up Again, Making It Four Days In A Row, CPI Inflation Report Due Out This Morning

Market Moves You Need to See Stocks Up Again, Making It Four Days In A Row, CPI Inflation Report Due Out This Morning [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks Up Again, Making It Four Days In A Row, CPI Inflation Report Due Out This Morning [Stocks Up Again, Making It Four Days In A Row, CPI Inflation Report Due Out This Morning]Image: Bigstock Stocks closed higher again yesterday, making it four up days in a row for the Dow, S&P, and Nasdaq. The Producer Price Index (PPI) inflation report came in higher than expected with the headline number increasing by 0.5% m/m vs. views for 0.3%, while the y/y rate was up 2.2% vs. last month's upwardly revised 2.0%, and the consensus for 1.7%. The core rate (ex-food & energy) was up 0.3% m/m vs. estimates for the same, but the y/y rate was up 2.7% vs. last month's upwardly revised 2.5%, and the consensus for 2.1%. Stocks were up in pre-market trading ahead of that report. And stayed that way afterwards. They did dip into the red midday, but returned back to green before finishing near their highs of the day. But we're not done with the inflation numbers. Yesterday's PPI was the wholesale inflation report. Today is the Consumer Price Index (CPI) or retail inflation report. The CPI report is expected to show headline inflation up 0.3% m/m, and 3.6% y/y vs. last month's 3.7% pace. The core rate is expected to be up 0.3% m/m as well, while the y/y rate is expected to come in at 4.1% vs. last month's 4.3% pace. That report comes out at 8:30 AM ET. We'll also get Weekly Jobless Claims. In other news, yesterday's MBA Mortgage Applications were up 0.6% w/w with purchases up 0.7%, and refi's up 0.3%. The Atlanta Fed Business Inflation Expectations dipped to 2.4% for the year-ahead period vs. last month's 2.5%. And we got September's FOMC Minutes. Nothing new there. The majority expected the Fed to raise one more time this year. But we already knew that. Still, Fed Fund traders are only placing a 30% chance of a rate hike for November's meeting, and 45% for December's. With numerous Fed members this week suggesting the Fed might very well be done raising if long bond yields keep going up, it's no wonder traders are placing lower odds that another rate hike will be needed. But again, the Fed maintains they will be data dependent. And that's why so much attention is paid to these inflation reports. But whether the Fed goes one more time, or calls it quits, they are forecasting cutting rates roughly -50% basis points next year, and then another -100 basis points the year after that. So whether there's one more hike or not, it looks like we are nearing the end of the rate hike cycle, if we haven't already hit it. And that's bullish for stocks. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Free Training: Catching the Next Wave of AI Profits]( AI is creating one of the biggest wealth-building opportunities we've ever seen. But not every stock will be successful with AI. In fact, many companies are already setting themselves up for failure. Some stocks will hand investors massive gains. Some will inflict painful losses. Dave Bartosiak is giving a special online training on Friday, October 13, to help you figure out which ones to buy and which to avoid. [Sign up for the Free Training »]( Most Popular Articles from Zacks.com [The 3 Widest Competitive Moats on Wall Street]( Competitive moats symbolize a company's sustainable advantage, protecting it from competitors and external threats. [Read More »]( [Middle East Conflict Fallout: 3 Market Surprises]( In the wake of escalating Middle East violence, several surprising developments have emerged in the stock market. 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