Stock Market Update

The S&P 500 futures are up six points and are trading 0.1% above fair value, the Nasdaq 100 futures are down six points and are trading roughly in line with fair value, and the Dow Jones Industrial Average futures are up 51 points and are trading 0.1% above fair value.

Initial jobless claims for the week ending September 7 increased by 2,000 to 230,000 (Briefing.com consensus 229,000). Continuing jobless claims for the week ending August 31 increased by 5,000 to 1.850 million.

The key takeaway from the report is that initial jobless claims remained fairly steady, underscoring the point that the labor market isn't suffering a material and rapid erosion that would challenge the soft landing view.

The Producer Price Index for August was up 0.2% month-over-month (Briefing.com consensus 0.2%) following a downwardly revised 0.0% (from 0.1%) in July. The Producer Price Index, excluding food and energy, was up 0.3% month-over-month (Briefing.com consensus 0.2%) following a downwardly revised 0.2% decline (from 0.0%) in July. On a year-over-year basis, the Producer Price Index was up 1.7%, versus 2.1% in July, and the Producer Price Index, excluding food and energy, was up 2.4%, versus 2.3% in July.

The key takeaway from the report is the recognition that inflation at the wholesale level is moderating, which lessens concerns about heightened pass-through pressures to the consumer.