From the Desk

Recent Economic Commentary

Brandon Casey, Member Strategist - 7/12/2024

U.S. stocks are higher Friday morning as the S&P 500 looks to rebound from its worst session since April. The DJIA inched higher on Thursday, while the S&P 500 and Nasdaq lost 0.88% and 1.95%, respectively. Both indexes broke seven-day winning streaks. All three major averages are poised to finish the week higher.

Looking at economic data today, the Producer Price Index rose 0.2% in June and 2.7% over the last year, just above expectations of 2.6%. Core prices were up 0.4% for the month and 3.0% over the last year. The annual core reading was just below expectations of 3.1% and down from 3.2% the previous month.

Elsewhere, the preliminary July reading of the University of Michigan Consumer Sentiment Index unexpectedly fell to 66.0, below expectations of 68.5. Current Conditions and Expectations were both lower at 64.1 and 67.2, respectively. Year-ahead inflation expectations fell to 2.9%, down from 3.0% the previous month.

U.S. Treasury yields are steeper this morning, with the 2-year Treasury yield down 2.2 basis points to 4.48%, the 5-year Treasury yield up 0.2 basis points to 4.12%, and the 10-year Treasury yield up 0.7 basis points to 4.20%. Advance rates are higher throughout most of the curve.