Valuation assesment of stocks is never easy
U.S. stocks are opening higher Tuesday after the June Producer Price Index (PPI) came in flat month-over-month with the year on year coming in lower at 2.3% versus 2.6% last month. The Ex food and energy also came in lower at 0.0% MoM with the YoY dipping to 2.6% from 3.0% last month. All of which is helping to ease inflation concerns.
The data followed Monday’s hotter CPI report but offered some reassurance that pricing pressures may not be building at the wholesale level – at least for now. Pantheon does see further price increases going forward as a result of the tariffs, but sees core PCE this month rising by 0.28% – not great but not bad either given concerns about tariff inflation starting to kick in.
The tamer PPI reading is helping boost sentiment ahead of the earning season., Bond yields are edging lower after gains yesterday took the 30 year back above 5% and the 10 year near 4.5%. The current 10 year yield is at 4.461% down -2.8 basis points. The thirty-year is at 4.989%, -2.9 basis points.
Looking at the major indices:
- Dow industrial average is up 206 points or 0.47%
- S&P index is up 15 points or 0.23%
- NASDAQ index is up 23 points or 0.11%. Yesterday the NASDAQ index closed at a record high.
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