Stock Market Update

The S&P 500 futures are up 32 points and are trading 0.6% above fair value, the Nasdaq 100 futures are up 179 points and are trading 0.8% above fair value, and the Dow Jones Industrial Average futures are up 101 points and are trading 0.3% above fair value.

The Producer Price Index for final demand increased 0.1% month-over-month in July (Briefing.com consensus 0.1%). The index for final demand, less foods and energy, was flat (Briefing.com consensus 0.2%) following a downwardly revised 0.3% increase (from 0.4%) in June.

On a year-over-year basis, the index for final demand was up 2.2% versus 2.7% in June. The index for final demand, less foods and energy, was up 2.4% versus 2.9% in June.

The key takeaway from the report is the disinflation trend in total and core PPI, as that is moving in a necessary direction to drive a rate cut by the Fed.