PPI Report Preview: Will September's Producer Prices Echo August's Startling Surge?
Portfolio Pulse from Piero Cingari
The Bureau of Labor Statistics is set to release the Producer Price Index (PPI) report for September. In August, producer prices surged by 0.7% month-on-month, driven by a 10.4% spike in energy costs. Economists predict a 0.3% increase in the PPI for September. The August PPI report led to a 0.9% rise in the SPDR S&P 500 ETF Trust (SPY), a 0.8% gain in the Invesco QQQ Trust (QQQ), and a 0.5% rise in the Invesco DB USD Index Bullish Fund ETF (UUP). The iShares 20+ Year Treasury Bond ETF (TLT) fell by 0.7%.
October 10, 2023 | 8:56 pm
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NEGATIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) fell by 0.7% following the release of the August PPI report.
The fall in the TLT was likely due to investors interpreting the higher-than-expected PPI reading as a temporary surge in energy costs rather than more structural price pressures.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco QQQ Trust (QQQ) gained 0.8% following the release of the August PPI report.
The rise in the QQQ was likely due to investors interpreting the higher-than-expected PPI reading as a temporary surge in energy costs rather than more structural price pressures.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) rose by 0.9% following the release of the August PPI report.
The rise in the SPY was likely due to investors interpreting the higher-than-expected PPI reading as a temporary surge in energy costs rather than more structural price pressures.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Invesco DB USD Index Bullish Fund ETF (UUP) rose by 0.5% following the release of the August PPI report.
The rise in the UUP was likely due to investors interpreting the higher-than-expected PPI reading as a temporary surge in energy costs rather than more structural price pressures.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80