The stock market was on edge earlier last week awaiting data on the CPI (Consumer Price Index) last Wednesday and the PPI on Friday. The PPI, (Producer Price Index) is the more closely watched indicator by the Federal Reserve.
The CPI rose 0.2% for the month of July and 3.2% on an annual basis. Excluding food and energy core CPI rose 0.2% month-over-month and 4.7% year-over-year in July. This was a slight downtick and softer than expected. (The market cheered).
The PPI in July rose 0.3% from the previous month and 0.8 from the previous year. This was a slight uptick and a bit “hotter” than expected. (Interest rates rose and the market was slightly down Friday and these negative sentiments continued into this week).
Weekly jobless claims rose by 21,000 from the previous week bringing the total for August 5th to 248,000, higher than expected. This also showed that the employment picture is beginning to slow.
Oil inventories rose by 5.9 million barrels last week, but crude oil prices rose $2.21, ending the week at $82.76 per barrel. Energy prices have been trending higher. This is concerning, as it inevitably will put pressure on the upcoming month’s inflation readings. Energy prices continue to hit consumers in their wallets. Analysts also believe this is directly tied to retail. Consumer discretionary and retail stocks are showing signs of weakness and a slowdown in spending. See oil chart below:
