Stocks Slide as Producer Prices Rise and Retail Sales Disappoint

US markets have turned downward in the last few minutes following the release of several significant economic reports which suggest a stagflationary environment heading into next week’s FOMC meeting. US Producer prices (1.9% vs street 1.1% and previous 0.9%) jumped upward, suggesting inflation pressures are starting to build again. US retail sales (0.6% vs street 0.8%, previous revised down to -1.1% from -0.8%) indicated a softer consumer spending environment than expected. Weekly US initial jobless claims (209K vs street 218K) suggest the job market is holding up at least.

The US 10-year treasury note yield has climbed back up above 4.20% on the hotter than expected inflation number. US index futures are trading flat to up 0.2%, down from gains of 0.3%-0.4% prior to today’s news. Yesterday US markets finished with a split decision as the Dow gained 0.1% and the NASDAQ lost 0.5%. Overseas action is mixed today, the FTSE is flat, the Dax is up 0.1%, the Nikkei gained 0.3% but the Hang Seng lost 0.7%.

Catching a tailwind from this week’s surprise drawdowns in US API and DOE oil inventories, US Crude Oil is up another 1.0% this morning and trading back up above $80.00/bbl, while Natural Gas is down 0.5%. Metals are soft with Copper down 0.2%, but holding above its $4.00/lb recent breakout point, Gold down 0.4% and Platinum down 0.3%. Crypto trading finds Bitcoin down 0.7% and Ether down 1.7%.

Homebuilder Lennar* is down 1.7% in premarket trading this morning despite crushing earnings estimates ($2.57 vs street $2.21), in what appears to be profit-taking against the news. Adobe reports after the close this afternoon.

*Shares of Lennar are held in some portfolios held by SIA Wealth Management.

Terms and Conditions:

This information is for Investment Advisors only. The website is for informational purposes only and is not intended to provide a complete description of SIA Wealth Management’s products or services. Past performance is not indicative of future results. It should not be construed as investment advice or relied upon in making an investment decision. Products and services of SIA Wealth Management are only offered in jurisdictions where they may be lawfully offered for sale. The information contained in this Website does not constitute an offer or solicitation by anyone to buy or sell any investment fund or other product, service or information to anyone in any jurisdiction in which an offer or solicitation is not authorized or cannot be legally made or to any person to whom it is unlawful to make an offer of solicitation. All products and services are subject to the terms of each and every applicable agreement. It is important to note that not all products, services and information are available in all jurisdictions outside Canada.

SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, Advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIA Wealth Management Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.