March's PPI was cooler than analysts expected
Stock futures are modestly higher this morning, as traders unpack another cooler-than-expected inflation report. March's producer price index (PPI) dropped 0.5% instead of coming in flat, and fell to 2.7% from 4.9% year-over-year. Additionally, core wholesale prices shed a surprise 0.1% last month. Meanwhile, weekly jobless claims rose to 239,000 compared to analysts' expectations of a rise to 235,000.
Continue reading for more on today's market, including:
- Behind Shopify stock's surge.
- A look at the yield curve inversion from a historical standpoint.
- Plus, DAL pops on forecast; bear note pushes FSLR lower; and SHOO boosted on upgrade.
5 Things You Need to Know Today
- The Cboe Options Exchange (CBOE) saw more than 1 million call contracts and 710,264 put contracts traded on Wednesday. The single-session equity put/call ratio rose to 0.70 and the 21-day moving average stayed at 0.78.
- Delta Air Lines Inc (NYSE:DAL) is up 2.4% premarket, brushing off a first-quarter earnings miss after the company issued a strong second-quarter outlook, amid "record advance bookings for the summer." Year-to-date, DAL is up 2.7%.
- Shares of First Solar Inc (NASDAQ:FSLR) are down 1.2% in electronic trading, after a downgrade from Deutsche Bank to "hold" from "buy." Though the stock is pulling back further from its Mar. 30, 14-year high, the $200 level lingers as support. Since the start of the year, FSLR is up 38.8%.
- Citigroup upgraded Steven Madden Ltd (NASDAQ:SHOO) to "buy" from "neutral," with a price-target hike of $2 to $42, with the analyst in question noting the potential for strong wholesale orders. SHOO is up 4.4% before the bell, and is up 6.7% in 2023.
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Asian Markets Unpack Export, Import Data
Asian markets closed Wednesday mostly higher, shrugging off the hawkish Fed minutes stateside. In China, exports grew 14.8% in March to beat expectations and snap a five-month streak of declines. Nevertheless, the Shanghai Composite fell 0.3%, while Hong Kong’s Hang Seng added 0.2%. South Korea’s Kospi tacked on 0.4%, after the country's import and export prices fell last month, with the former marking 11-straight monthly declines. Rounding out the region, the Bank of Japan (BoJ) reiterated its stance on monetary easing policy, helping the Nikkei rise 0.3%.
European stocks are mixed this afternoon, as investors in the region also weigh U.S. inflation data. In addition, data from the Office for National Statistics showed the U.K. economy was flat in February. At last glance, London’s FTSE 100 is marginally higher and the German DAX is fractionally lower, while the French CAC 40 is up 1%.