Industries down after wholesale inflation data – Industry roundup
Shares of industrial and transportation companies fell after the wholesale inflation data.
According to some strategists, there were incipient signs that price increases may have peaked in the Producer Price Index report and the Consumer Price Index data that preceded it.
“I think it peaked for two reasons: one, some of the very high readings from April and May of last year are going to drop, so from an arithmetic point of view the number is going to go down,” said Oliver Pursche, senior vice president of financial advisory Wealthspire. “Secondly: you also see some of the upward pressures diminishing.
Oil has stabilized…it’s still high, it’s still high, but you’re not going to go from $40 to $100.”
One area where inflation appeared to peak in the consumer price data is the used car market, a development that appears to be confirmed in the producer price data. “The monthly decline in commercial services prices was most visible for wholesalers of goods that also became cheaper in the CPI basket, such as machinery and vehicles,” said Bill Adams, chief economist for the Comerica Bank, in an email comment.
Write to Rob Curran at email@example.com
(END) Dow Jones Newswire