Markets Remain Largely Motionless Amid Searing Heat As Investors Make Heads Or Tails Of Inflation’s PPI Surge

Markets Remain Largely Motionless Amid Searing Heat As Investors Make Heads Or Tails Of Inflation’s PPI Surge

Yesterday the market got behind the Fed's idea that inflation is transitory after a calm consumer price index (CPI) reading. Will that change today after a sizzling producer price index (PPI) reading? Remember that any gains in PPI can often get reflected in CPI down the road as companies react to higher wholesale prices by passing them along to the consumer. And then there's the other side of the coin—where companies absorb these prices, which can impact margins. Either way, inflation tends to pack a wallop. Major indices didn't immediately react much to a July PPI reading of 1%, which was way above the Wall Street analyst consensus of 0. 5%. That followed yesterday's CPI coming in about as expected and well below the June level. The July PPI was equal to June's, so that kind of takes a bit of the transitory argument away. Also, core PPI, which strips out volatile energy and food prices, was the same as the headline figure, so there's no hiding behind that. The PPI report is just the start of today's action. Later on, Disney (DIS) steps onto center stage with its earnings report. Focus is likely to be on streaming and whether