Daily Market Update
with Shawn Cruz

5 min read

Stocks Try to Build on their Recent Rally with Back-to-Back Softer-Than-Expected Inflation Reports

Shawn Cruz, Head Trading Strategist, TD Ameritrade

(Thursday Market Open) Investors look to build on the momentum from yesterday’s softer-than-expected Consumer Price Index (CPI) that prompted a broad rally in the stock market. 

Potential Market Movers

The Producer Price Index (PPI) was also softer than expected in July with wholesale inflation actually falling 0.5% for the month — coming in at 5.8% year over year (YOY). Core PPI increased 0.2% for July,  lower than the forecasted 0.4%. Core PPI was on target YOY at 7.6%. Lower wholesale inflation should translate into lower input costs for companies, which could mean wider profit margins.

Equity index futures were higher before the report came in and eventually moved higher after some initial volatility. The Cboe Market Volatility Index (VIX) remained relatively unchanged after the report, staying below the 20 level.

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