S&P 500
7,582.20
+0.03%
Dow Jones
51,018.80
+0.58%
Nasdaq 100
30,344.40
+0.25%
Russell 2000
2,916.31
-0.54%
FTSE 100
10,378.60
-0.32%
Nikkei 225
66,231.90
+0.67%

Companies and Brands

Retail Sales and PPI Show Deflationary Trend in October … What Inflation?

Photo of Jon C. Ogg
By Jon C. Ogg Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

We have two different economic reading this morning for the market to chew over, effectively the first real readings this week. Retail sales and the Producer Price Index are out.

Producer Price Index for October was -0.2% on the headline report and also came in at -0.2% on the more focused core PPI reading, which takes out the volatility of food and energy. These readings from the Labor Department are handily lower from the gains seen in September. These are also under expectations: Bloomberg was calling for +0.2% on the headline PPI and on the core PPI; Dow Jones was looking for +0.2% on the headline PPI and +0.1% on the core PPI reading. It is important to note that energy prices were down by 0.5% in the month.

Retail sales were lower in October, partly due to the effects of Hurricane Sandy. The headline report showed a reading of -0.3%, and the ex-autos retail was unchanged, in this release from the Department of Commerce. This seasonally adjusted reading came to $411.59 billion. Dow Jones was looking for +0.2% on the headline report, while Bloomberg was calling for -0.1% on the headline data and +0.2% on the ex-autos basis.

With a lower PPI and with a subdued retail sales report from the same month (October), investors will say that this is support of the Federal Reserve actions because there is no inflation. Unfortunately, if it continues then the deflation camp will start to make more noise.

JON C. OGG

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

Continue Reading

Jon C. Ogg |

Very Mixed Bag on Economic Data: Inflation, Retail Sales and Empire Manufacturing

A slew of economic data was released this morning. We got a look at retail sales, wholesale inflation via producer…

Producer Prices and Retail Sales Show Disappointing Inflation Trends
Jon C. Ogg |

Producer Prices and Retail Sales Show Disappointing Inflation Trends

Wishing for higher inflation sometimes just feels odd. You have to have higher prices in the future to help with…

Jon C. Ogg |

Mixed Inflation and Deflation News in Consumer Prices

The U.S. Labor Department's headline Consumer Price Index for November posted its largest decline in almost six years.

Jon C. Ogg |

Producer Prices Tick Up — the Largest Reading Since September 2012

Ed Brown, via Wikimedia CommonsThe Labor Department has released the Producer Price Index (PPI), also known as wholesale inflation. The…

Jon C. Ogg |

Retail Sales, Import Prices and PPI May All Keep Deflation Alive

ThinkstockThe Federal Reserve wants inflation around 2.0% to 2.5%, but that remains a pipe dream. In fact, deflationary fears remain…

Retail Sales Rise Along With Wholesale Inflationary Data
Jon C. Ogg |

Retail Sales Rise Along With Wholesale Inflationary Data

It is no secret that the Federal Reserve has had its hands tied on its desire to raise interest rates.…

Inflation and Retail Sales Continue to Disappoint
Jon C. Ogg |

Inflation and Retail Sales Continue to Disappoint

Some fresh economic readings show why the Federal Reserve may be less robust in its tightening efforts. The consumer price…

Even Higher Producer Prices vs Consumer Prices Not Spooking the Markets
Jon C. Ogg |

Even Higher Producer Prices vs Consumer Prices Not Spooking the Markets

Thursday's report on producer prices was actually hotter than the consumer report when it comes to inflationary pressures.

Jon C. Ogg |

Tame Wholesale Inflation Via PPI, Retail Inflation May Still Be Transitory

Inflation is transitory… That is what you are told over and over by the likes of Ben Bernanke and friends…

Top Gaining Stocks

Dell Technologies
DELL • Vol: 42,366,555
NetApp
NTAP • Vol: 15,911,807
ServiceNow
NOW • Vol: 68,243,561
IBM
IBM • Vol: 28,527,546
Hewlett Packard Enterprise
HPE • Vol: 86,996,387

Top Losing Stocks

Coterra Energy
CTRA • Vol: 73,319,495
Clorox
CLX • Vol: 4,744,001
ResMed
RMD • Vol: 3,526,686
Intel
INTC • Vol: 191,680,425
Skyworks Solutions
SWKS • Vol: 5,407,806