LIVE MARKETS-S&P 500 futures edge up, yields ease after tame PPI reading

Regarding the PPI, Brian Jacobsen, chief economic strategist at Annex Wealth Management, said: > "PPI shows the price pressure in the pipeline is still intense, but dissipating. When we get a big price shock, that shows up as inflation, but as long as we don’t keep having shocks pushing prices ever higher, inflation will slow." Jacobsen added: > "The disconnect between economists and the public is that lower inflation doesn’t mean lower prices. The public shouldn’t wait for lower prices. They just need to get used to where prices are." Here is a premarket snapshot from around 8:54 a.m. ET. U.S. equity index futures are modestly higher on the day, adding slightly to gains in the wake of mostly cooler-than-expected producer price inflation data, while initial jobless claims topped forecasts. E-mini S&P 500 futures ESc1 are now up around 0.2% vs. a gain of around 0.15% just before the numbers came out. The July headline PPI on a month-over-month basis came in at 0.0% vs. a 0.2% estimate. The year-over-year print was 4.7% vs. the 4.9% Reuters Poll. Core PPI, which excludes food and energy, month-over-month was 0.2% vs. a 0.3% estimate. The year-over-year ex-food/energy read was 4.2% vs. a 4.2% Reuters Poll. Separately, initial jobless claims came in at 209,000 vs. a 202,000 estimate. According to the CME's FedWatch Tool, the probability that the Fed leaves its current target rate of 3.50%-3.75% unchanged at its September 15 to 16 FOMC meeting is now 68% vs. 60% just before the data was released. The chance that the FOMC hikes rates by 25 basis points is now around 32% vs. 40%. Interest rate probabilities based on Fed funds futures are now suggesting the implied target rate will be 24.7 bps higher through December 2026 vs. 26.2 bps higher just before the data came out. The U.S. 10-Year Treasury Yield US10YT=RR is hovering around 4.66%. It was around 4.67% just before the data came out. The yield ended Wednesday at 4.682%. S&P 500 .SPX sector SPDR ETFs are mixed and little changed in premarket trading. Financials XLF.P, up around 0.4%, are leading gains. Energy XLE.P, off around 0.5%, is the weakest performing group. The SPDR S&P Regional Banking ETF KRE.P is up around 0.2%. The Invesco PHLX Semiconductor ETF SOXQ.O is dipping around 0.6%. Euro STOXX 600 index up ~0.1%. Dollar, gold dip; U.S. crude down >2%; bitcoin up slightly.

LIVE MARKETS-S&P 500 futures edge up, yields ease after tame PPI reading

Commentary from Annex Wealth Management

S&P 500 futures edge up after cooler PPI data

Yields ease, dollar and commodities drift lower

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