Hot PPI sinks gold, freight stocks
August producer prices rose 5.4% year over year, above the 5.3% consensus, and the monthly rate accelerated to 0.4% from 0.1% in July. Gold, precious metals miners and freight names fell after the report, with spot gold near $4,342 an ounce and the 10-year Treasury yield at 4.90%.
Gold, precious metals miners and freight stocks took the brunt of Thursday’s hot producer inflation print. 1% monthly explosion in diesel prices went straight into transportation costs, while a firmer dollar and rising Treasury yields squeezed gold and non-yielding asset across markets. Shares of Franco-Nevada Corp. (NYSE: FNV ) and FedEx Freight Holding Co.
(NYSE: FDXF ) were among the worst-performing name in the hour following the report among large-cap stocks. 1%. 90%, a fresh three-year high. Equities went with it.
0%. 0% to $76,800. The Detail Nobody Priced RSM chief economist Joseph Brusuelas flagged the point that reframes the entire report: the BLS sampling period only runs through Aug. 11, meaning this print never captured the recent surge in oil, gasoline and diesel prices.
“That means inflation in the wholesale pipeline is going to move higher in September and those gasoline and diesel prices will spread into the core,” Brusuelas wrote on X. 4% from one year ago. Upward revisions to both topline and core in July. 6%.
7% y/y. It's important to note that the sampling period only goes through August 11. ” Mohamed El-Erian, chief economic adviser at Allianz, focused on the gap between the data and the tape. ” Fed futures currently assign a 66% chance of a 25-basis-point hike at the Federal Open Market Committee (FOMC) meeting next week.
10 Names To Watch On Thursday According to the Pro premarket movers screen: Franco-Nevada Corp. 50, the worst large-cap decline on the screen. FedEx Freight Holding Co. 13, the most direct casualty of the diesel line item.
Onto Innovation Inc. 15 as long-duration semiconductor names sold off with yields. Sterling Infrastructure, Inc. 03.
NRG Energy, Inc. 50 as higher yields pressured utilities. 00, with resin and freight costs feeding straight into packaging margins. Strategy Inc.
79, tracking bitcoin lower. Stanley Black & Decker, Inc. 65 as the housing-linked complex sold off with mortgage rates at 15-month highs. Eldorado Gold Corp.
73. IAMGOLD Corp. 55. Photo: Shutterstock