Last Updated: 4:11 PM EST
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Stock indices finished today’s trading session mixed. The Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) gained 0.52% and 0.11%, respectively. Meanwhile, the Nasdaq 100 (NDX) fell 0.13%. Earlier today, the Department of Labor released its Producer Price Index (PPI) report, which essentially measures manufacturing inflation. This figure came in at 3.3% year-over-year and 0.2% month-over-month. For reference, economists were expecting 3.4% for the former and 0.4% for the latter.
In addition, yearly and monthly core PPI figures were 3.5% and 0%, respectively, compared to estimates of 3.7% and 0.2%. The lower-than-expected wholesale inflation data is a positive sign for the Federal Reserve as it works to keep inflation under control.
When breaking down the numbers further, the report showed a 0.4% increase in final demand prices, largely due to a 0.6% rise in prices for goods, while service prices remained flat after a 0.3% increase in November. Gasoline prices surged 9.7% and contributed significantly to the increase, along with higher prices for residential electricity, meats, motor vehicles, and fresh fruits. However, prices for fresh vegetables dropped 14.7%, and carbon steel scrap also saw a decline.
In the services category, passenger transportation costs rose 7.2%, while automotive fuel retailing and food retailing also saw price increases. On the other hand, traveler accommodation services fell 6.9%, and machinery and vehicle wholesaling, loan services, and furniture retailing experienced price declines.
Separately, Kansas City Fed President Jeff Schmid said that the Federal Reserve will closely monitor how the incoming administration’s policies impact the economy. During a Q&A at the Central Exchange of Kansas City, Schmid noted it’s still too early to predict what policies President Donald Trump’s second term will bring and how they will affect economic conditions. Schmid reiterated his belief that the economy is nearing a neutral point where it doesn’t require added support or restrictions. He pointed out that inflation has eased, and economic growth remains steady.
First Published: 3:42 AM EST
U.S. stock futures edged higher on Tuesday morning as investors braced for the release of the Producer Price Index (PPI) data, the first of two key inflation reports due this week. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were up 0.56%, 0.24%, and 0.4%, respectively, at 3:23 a.m. EST, January 14.
The previous session saw a mixed performance, with the Dow Jones and the S&P 500 up 0.9% and 0.2%, respectively. However, the Nasdaq Composite witnessed a four-day losing streak, driven by profit-taking in technology stocks like Nvidia (NVDA), which declined nearly 2%.
The PPI report, scheduled for release later in the morning, is expected to provide valuable insights into inflationary pressures. Currently, economists anticipate a 0.4% month-over-month increase in headline PPI and a 0.3% increase in core PPI. These figures will be closely watched by investors and policymakers as they can influence the Federal Reserve’s next steps regarding interest rate policy.
On the corporate front, investors will be focused on earnings reports from companies like Progressive (PGR) and Applied Digital (APLD), which are set to report their fourth-quarter earnings today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 4.755%. Simultaneously, WTI crude oil futures are trending lower, hovering near $78.44 per barrel as of the last check.
Elsewhere, European indices opened higher on Tuesday morning as investors looked forward to key inflation data from the U.S.
Asia-Pacific Markets Traded Mixed on Tuesday
Asia-Pacific indices were mixed today. The Chinese market led the gains after the China Securities Regulatory Commission said that ensuring market stability would be a top priority in 2025.
At the same time, Hong Kong’s Hang Seng Index was up 1.83%. Further, China’s Shanghai Composite and Shenzhen Component indices gained 2.54% and 3.77%, respectively. However, Japan’s Topix and Nikkei indices fell 1.83% and 1.16%, respectively.
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