Producer Inflation Could Tee Up Traders For Crucial Consumer Price Index Release
Portfolio Pulse from Piero Cingari
This week, investors are focused on the U.S. Producer Price Index (PPI) and Consumer Price Index (CPI) reports. Economists expect a cooling in producer prices for July, which could signal easing price pressures. The PPI report is anticipated to show a 0.1% month-over-month increase, down from 0.2% in June. The core PPI is expected to rise by 0.2% monthly, cooling from 0.4% in June. Previous PPI data led to gains in the S&P 500, Nasdaq 100, and U.S. Treasury bonds, while gold and oil prices declined.
August 12, 2024 | 3:13 pm
News sentiment analysis
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NEGATIVE IMPACT
The SPDR Gold Trust (GLD) ended 0.2% lower after the last PPI report. If the upcoming PPI shows cooling inflation, it could lead to further declines.
The GLD ETF, which tracks gold prices, is likely to react negatively to signs of cooling inflation.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
The United States Oil Fund (USO) declined by 0.9% after the last PPI report. Cooling inflation in the upcoming PPI could lead to further declines.
The USO ETF, which tracks oil prices, is likely to react negatively to signs of cooling inflation.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
The Invesco QQQ Trust (QQQ) gained 0.6% after the last PPI report. A similar reaction is expected if the upcoming PPI indicates easing inflation.
The QQQ ETF, which tracks the tech-heavy Nasdaq 100, is likely to benefit from signs of cooling inflation.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (SPY) rose 0.6% following the previous PPI report. If the upcoming PPI shows cooling inflation, it could lead to further gains.
The SPY ETF is likely to react positively to signs of cooling inflation, as indicated by the previous PPI report's impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) closed 0.4% higher after the last PPI report. Cooling inflation in the upcoming PPI could lead to further gains.
The TLT ETF, which tracks U.S. Treasury bonds, is likely to react positively to signs of cooling inflation.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70