OT: Stock and Investment Talk
- Thread starter RU-05
- Start date
Volatility will be significant during this earnings period. If not a solid beat, or if there is mixed or negative guidance, downside volatility will be significant as multiples are highish. In my estimation, it will be a “stock pickers” market.
My SLB leap calls are booming and CVX is up nicely. What's the story with DVN? Oil or nat gas play?
Yeah, the market seems jittery, but after two great years, I guess it is natural to be cautious.
PPI comes in super light. So, the inflation appetizer was yummy. Tomorrow is the main course (CPI).
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The U.S. Bureau of Labor Statistics said headline PPI rose 0.2% M/M in December 2024, versus a consensus of +0.4% and November's reading of +0.4%. Even more notably, core PPI was flat M/M, significantly lower than the expected rise of 0.3%.
PPI "will be worth watching as tariffs develop because trade taxes will increase input costs for US companies," UBS chief economist Paul Donovan said. "If tariffs succeed in reducing imports, the loss of competition to US firms may also increase pricing power."
While not as influential as Wednesday's consumer price index report, the PPI will likely move Fed expectations. Currently, the market is pricing in a coin flip of the next quarter-point cut coming in June or July and a one-in-three chance of no moves at all this year.
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The U.S. Bureau of Labor Statistics said headline PPI rose 0.2% M/M in December 2024, versus a consensus of +0.4% and November's reading of +0.4%. Even more notably, core PPI was flat M/M, significantly lower than the expected rise of 0.3%.
PPI "will be worth watching as tariffs develop because trade taxes will increase input costs for US companies," UBS chief economist Paul Donovan said. "If tariffs succeed in reducing imports, the loss of competition to US firms may also increase pricing power."
While not as influential as Wednesday's consumer price index report, the PPI will likely move Fed expectations. Currently, the market is pricing in a coin flip of the next quarter-point cut coming in June or July and a one-in-three chance of no moves at all this year.
