The latest PPI data, which dropped yesterday morning, showed a decline in prices.
The Producer Price Index (PPI) is thought to lead the CPI in some regards since often producers are passing along the higher (or lower) costs to consumers.
- Prices fell 0.1% month over month
- Prices are still up 8.7% year over year
Markets took the number in stride.
All four indexes ended with modest gains…
- Dow Jones +0.1%
- Nasdaq +0.7%
- S&P 500 +0.3%
- Russell 2000 +0.4%
Beneath the surface, the market appears a bit more divided.
49% of all stocks advanced, while 46% declined.
6 of 11 sectors finished the day higher.
At the top…
- Energy (XLE) +2.8%
- Consumer Discretionary (XLY) +1.3%
At the bottom…
- Real Estate (XLRE) -1.2%
- Materials (XLB) -1.2%
One notable decline was in steel producer Nucor (NUE), which dropped 11% after providing weak Q3 guidance.
- The steel market is flooded as supply is outpacing demand.
- The company did note that it expected 2022 to be its most profitable year ever.
The S&P 500 held support … for now
We are watching the rising support level closely.
If buyers are going to have a strong showing this year, we’d like to see this level hold.
Our top indicators are beginning to look bullish … But should be taken with a grain of salt…
- The VIX is heading lower, towards the key level of 25
- RSI levels remain neutral for all four major indexes
- The Put-to-Call Ratio is oversold for a 3rd day
No big market moving news is expected today.
But today is an important anniversary…
On this day in 2008, Lehman Brothers declared bankruptcy.
- Prior to that, it was the world’s 4th largest investment bank
- Founded in 1850, the company survived for 172 years before falling
- It was exposure to subprime mortgages that did it in.
Lehman’s collapse left over 25,000 people unemployed and was the largest bankruptcy in U.S. history.
One lesson for today: 2022 is not 2008.
IMRA support at $2, resistance at $2.40
EPM support at $8
MNTK support at $19
DCPH support at $18
RYTM support at $27
CRBU support at $12
RVNC resistance at $29
SGML support at $25
SEEL support at $1.35
^GEO support at $8
ARDX support at $1.40
PGEN support at $2.60
TCRT on watch
PL support at $7
^GERN support at $2.80