- US stocks rose were mostly higher Thursday morning as wholesale prices increased less than expected in March.
- The producer price index rose by 0.2% for the month, short of the 0.3% expected by economists.
Major stock indexes trimmed losses Thursday morning as a key inflation gauge for wholesale prices rose less than anticipated in March.
Stocks recovered some losses from Wednesday's big sell-off, while Treasury 10-year yields edged lower, though remained above the closely watched 4.5% threshold.
According to a release from the Bureau of Labor Statistics on Thursday, the producer price index rose by 0.2% for the month, falling short of the 0.3% estimate from the Dow Jones consensus. Though it came in cooler than expected, the reading still marks the biggest jump in 11 months.
Excluding food and energy, core PPI climbed by 0.2%, in line with forecasts. When trade services are excluded from the core level, the monthly increase stood at 0.2%, but surged by 2.8% compared to a year ago.
Meanwhile, unemployment claims clocked in at 211,000 for the week ending April 6, down from the previous week's reading of 222,000.
The latest data arrives after Wednesday's publication of consumer price index data, which showed inflation rose 3.5% year-over-year in March. The reading was higher than expected and has complicated the market's outlook for interest rate cuts from the Federal Reserve.
George Ball, chairman of a Houston-based investment firm, Sanders Morris, said in a note on Thursday morning that the latest PPI indicates that inflation data is inherently inconsistent despite instilling some encouragement.
"All eyes are on the PCE report at the end of April as the most accurate gauge on inflation, as the PCE is the Fed's favored inflation gauge. Until then, only spasms of rate guessing will mark the markets," he said.
"It's not going to be Fed rate cuts that drive the market going forward, rather it's going to be earnings, which should be $250 on the S&P 500 this year. Corporate earnings are much stronger than people have anticipated even in this elevated interest rate environment," he added.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:
- S&P 500: 5,161.16, up 0.01%
- Dow Jones Industrial Average: 38,381.85, down 0.21% (-79.66 points)
- Nasdaq Composite: 16,228.42, up 0.35%
Here's what else is going on:
- Stocks are headed for a dead zone with losses on par with past crashes, a top fun manager says.
- The dollar's demise has been exaggerated, according to ING.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil fell by 0.78% to $85.54 a barrel. Brent crude, the international benchmark, fell 0.63% to $89.91 a barrel.
- Gold rose 0.49% to $2,343.16 per ounce.
- The 10-year Treasury yield dropped one basis point to 4.546%.
- Bitcoin rose 1.23% to $65,700.