Matteo Colombo
The stock market is off its highs Thursday as low inflation enthusiasm wanes a little.
The Nasdaq (COMP.IND) is +0.2%, the S&P 500 (SP500) is +0.4%, and the Dow (DJI) is +0.5%.
Ten of 11 S&P sectors are higher, with Energy at the top. Consumer Discretionary and Info Tech are the weakest.
Longer rates have turned around. The 10-year Treasury yield (US10Y) is up 5 basis points to 2.84%. The 2-year yield (US2Y) is down 2 basis points to 3.20%.
The PPI fell 0.5% for the month in July, down from 1% in June and compared to expectations for a 0.2% rise. The core PPI rose 0.2% monthly, half what was forecast.
The market impact was less than that of the CPI yesterday, with investors already reining in forecasts for Fed rate hikes. The odds of a 50-basis-point hike next month rose to about 70% after the PPI arrived from about 60% earlier.
On the labor front, jobless claims rose about as expected to 262K.
Among active issues, Disney remains among the best S&P performers following its resutls. BofA says Disney+ has a path to profitability.