U.S. stocks were mostly higher at Wednesday's open as investors weighed producer price data that showed inflation rose slightly last month.
The S&P 500 (^GSPC) rose about 0.24%, while the Dow Jones Industrial Average (^DJI) ticked up 0.25%. The technology-heavy Nasdaq Composite (^IXIC) edged lower by 0.18%.
The September producer price index (PPI), a measure of prices at the wholesale level, rose 0.4% in September after falling 0.2% during the prior month as inflation persisted. Economists expected the headline figure to rise 0.2%. The PPI release comes before Thursday's highly anticipated release of the government's consumer price index (CPI) report.
"Prices remain elevated so it shouldn’t be a surprise to see producer goods and services rise. Keep in mind the increase is still below what we were seeing consistently month after month earlier this year," wrote Mike Loewengart, Head of Model Portfolio Construction at Morgan Stanley Global Investment Office.
"No doubt the Fed still has its work cut out for them, and if tomorrow’s CPI read is hot, don’t be surprised to see some investors come to grips with how long the road to tamer inflation may be," Loewengart added.
The minutes from the Federal Reserve’s latest monetary-policy meeting will be published Wednesday. Investors will be mulling over officials’ discussions about continued tightening and its economic impact.
“Any hope of a helping hand from the Fed minutes may not be forthcoming, with the commentary to an extent outdated at this point and policymakers seemingly unified in their goal of defeating inflation. Even a good CPI number tomorrow may do little to change that in the near-term,” wrote Craig Erlam, Senior Market Analyst at Oanda.
Wall Street has also been keeping a close eye on monetary action overseas, as Bank of England Governor Andrew Bailey announced the bank would end its emergency bond-buying program Friday.
“Bailey's comments do not inspire great confidence in sterling assets. Multiple comments — including the indicative message to funds that ‘you've got three days left’ makes it clear that the BoE does not intend to roll forward its temporary asset purchases," Patrick Locke, a G10 FX Strategist at JPMorgan Chase, wrote in a note to clients.
The move could prompt further asset selloffs from U.K. pension funds amid interest-rate hikes. The impact hit yield on 30-year gilts, but U.S. Treasuries were unchanged. Treasury yields remained lower across the curve as crude oil stayed flat.
Analysts are also bracing for the first wave of major corporate earnings reports out this week, which could further show weakness as persistent inflation, higher interest rates, and a stronger dollar weigh on companies’ bottom lines. PepsiCo (PEP) posted better-than-expected results as the company lifted its annual forecasts for revenue and profits. The stock was up nearly 4% in early trading.
Financial heavyweights such as BlackRock (BLK), JPMorgan Chase (JPM), and Morgan Stanley (MS) report later this week.
On Wednesday, the Food and Drug Administration authorized an updated Covid-19 booster shots for children as young as 5 years old. Shares of Moderna (MRNA) were up 10%, and Pfizer (PFE) ticked up 2.2% following the emergency authorization.
—
Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv
Click here for the latest economic news and economic indicators to help you in your investing decisions
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Related Quotes
The IMF downgraded its outlook for the global economy next year based on the effects of the war in Ukraine, global inflation that requires interest rate hikes and a slowdown in China.
What to watch in markets Wednesday, October 12, 2022.
The Dow Jones Industrial Average rose in choppy trading on Wednesday, as the Wall Street attempts to snap its 5-day losing streak.
Apple is still Apple, argues one Wall Street analyst.
The Dow Jones Industrial Average fell Wednesday on hot inflation data. Minutes from Federal Reserve's policy meeting are due out today.
Inflation is high, the Fed is aggressively hiking interest rates, and the markets keep testing their lows for the year. The rest of this week will see several key monthly reports, including the consumer price index, or the inflation report, on Thursday. Currently, inflation is up 8.3% since last year, and economists are expecting that number to decline to 8.1%. Jim Cramer, the well-known host of CNBC’s ‘Mad Money’ program, is finding a silver lining in the current situation, telling investors, “
Yahoo Finance Live anchors discuss September Producer Price Index (PPI) data.
Institutional investors see an opportunity as homebuilders try to unload properties.
Being middle-aged and experienced, I decided I want flexibility, structure and growth — three nouns I normally don't associate with a career. It can be done.
The sell-off in crypto and other asset classes may have much further to go, warns one industry insider.
Yahoo Finance’s Jared Blikre breaks down how markets opened on Wednesday.
U.S. stocks rose slightly after turmoil in U.K. government-bond markets helped drag the Nasdaq Composite into a bear market.
U.S. stocks slid on Tuesday to cap a back-and-forth session as investors gear up for a big inflation report Wednesday and the start of third-quarter earnings season.
Kevin Nicholson RiverFront Investment Group Global Fixed Income CIO, and Heritage Capital President Paul Schatz assess market losses, outlook for market bottoms, earnings forecasts, and the impact of the Fed's interest rate hikes against inflation.
After three rough quarters for the stock market, investors are hoping for some better news as 2022 nears the finish line. Like many stocks in 2022, e-commerce infrastructure provider Shopify (NYSE: SHOP) saw a steep fall from grace. Specifically, Shopify's management overestimated its post-pandemic growth projections.
In this article, we will discuss the 14 best most active stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Best Most Active Stocks To Buy Now. The stock market is feeling the reverberations of the Fed’s aggressive rate hikes. As of October 10, the […]
This beaten-down pot stock has a real shot at delivering 2,000% plus returns by the end of the decade.
These stocks pay at different intervals and collectively can ensure you're collecting a dividend payment each month.
Here are two excellent companies to consider: AstraZeneca (NASDAQ: AZN) and Roku (NASDAQ: ROKU). U.K.-based AstraZeneca has a rich and diversified lineup of drugs. The company's best-selling therapeutic area is oncology.
Lithium Americas Corp. (LAC) closed the most recent trading day at $22.78, moving -1.64% from the previous trading session.