Stocks did receive a boost initially after wholesale inflation in August dipped for the first time in four months, boosting the case of a rate cut next week by the US Federal Reserve. August PPI stood at a negative 0.1%, contrary to expectations of a 0.3% growth from July. The July figure of 0.9% growth was also revised lower to 0.7%.
The day though, belonged to Oracle Corp. as its 37% rally made it its best day since 1992 and also catapulted its founder Larry Ellison to the title of the “World’s richest Man”, albeit briefly. The stock added $244 billion to its market capitalisation, testing the $1 trillion mark as well.All eyes in today’s session will be on the retail inflation figures, which get greater prominence compared to the wholesale figures. Economists are projecting a 0.3% growth from last month and a 2.9% rise from the year-ago period. The Core CPI, which excludes the volatile food and energy prices are expected to rise 3.1% from last year and 0.3% from July, according to polls.
The PPI inflation print did not move the needle much with regards to a rate cut from the Fed next week. 90% still believe a 25 basis points cut will be done by the central bank on September 17, while the remaining are hoping for a 50 basis points cut, according to the CME FedWatch tool.
Oil prices rose after Israel carried out attacks in Yemen against Houthis, which the latter claims hit civilian targets, including local newspaper offices, leading to 35 deaths and over 130 injuries. A potential shutdown of a large pipeline in California is also lending support to prices.
The initial jobless claims will also be reported later this evening.
