Stock Market Update

The stock market is now on track for a lower opening this morning following a hotter-than-expected February PPI report. 

The Producer Price Index for final demand increased 0.7% month-over-month (Briefing.com consensus: 0.3%) following a 0.5% increase in January. The Producer Price Index for final demand, less foods and energy, jumped 0.5% month-over-month (Briefing.com consensus: 0.4%) following a 0.8% increase in January.

On a year-over-year basis, the Producer Price Index for final demand was up 3.4%, versus 2.9% in January, and the Producer Price Index for final demand, less foods and energy, was up 3.9%, versus 3.6% in January.

The key takeaway from the report is that the uptick in producer prices was seen in both goods (+1.1%) and services (+0.5%), and the added point is that this higher inflation occurred before the war with Iran and subsequent surge in energy prices, which will foment concerns about a worsening inflation situation.