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PPI report today also showed a worse inflation picture, even outside of food and energy. Final demand ex food and energy was +0.7% vs 0.3% expected. Ex food, energy, and trade it was +0.5%. So Y/Y headline PPI now 6.3%, core PPI at 5.0%.

Mill Street Research

@millstreetresearch.com

However, retail sales looked more mixed. Headline was +0.8%, but ex autos and gas was up +0.2% and "control group" that goes into GDP was +0.1%. So spending outside of autos and gas slowed down in September after a big month in August.

15/10/26, 1:10 pm0 reposts3 likes

Mill Street Research

@millstreetresearch.com

Notably, bond yields were trading lower overnight and fell a bit further after the economic data. Bad inflation news was presumably already priced in after yesterday, but mostly looks like more risk-off activity with NASDAQ futures falling this morning. SP500 futures down mildly, R2K up a bit.