US Producer prices came in hotter than expected this morning (3.5% vs street 3.2% and previous 3.3%), confirming the increase in inflation seen in yesterday’s US consumer price report. Tomorrow brings US retail sales for this month.
Unlike yesterday where stocks sold off on the prospects of rising inflation, traders appear to be taking today’s news in stride. US index futures are all still flat to up marginally on the news. European markets are mixed today with the Dax up 1.75% on a benign German inflation report (unchanged and in line at 2.8%) and the FTSE down 0.5%.
The US 10-year treasury note yield is steady near 4.55% on this news. The US Dollar is up 0.2% against the Euro and the Canadian Dollar. Precious metals are mixed with Gold up 0.3% and Silver down 0.2%. Bitcoin is down 1.0%. Commodities are mixed with Crude Oil down 1.1%, Natural Gas up 4.3% and Copper up 0.3%.
In earnings developments, Cisco Systems is up 6.0% in premarket trading today after beating the street ($0.94 vs street $0.91). In Canada, Sun Life ($1.68 vs street $1.77) and Canadian Tire ($4.07 vs street $4.27) disappointed, but Telus ($0.25 vs street $0.22, up 3.3% premarket) exceeded expectations. AirBnB and Fairfax Financial* report after the close today.
*Shares of Fairfax Financial are held in some portfolios managed by SIA Wealth Management.