Producer Prices Surge, Consumer Inflation Awaits: Retail Sales and Inflation Reports Impact Markets

New York, New York, USA United States of America
Consumer inflation is forecasted to have edged lower to 3.4% in April.
GameStop shares saw a surge, costing short sellers over $1.2 billion.
Producer prices rose 0.5% in April and are up 2.2% annually.
Retail sales are expected to have risen 0.4% in April.
Producer Prices Surge, Consumer Inflation Awaits: Retail Sales and Inflation Reports Impact Markets

Inflation Update: Producer Prices and Consumer Expectations

The Labor Department released its latest report on producer prices for April on Tuesday, revealing a larger-than-expected increase in inflation at the wholesale level. The producer price index (PPI) measures inflation before it reaches consumers, and the data showed that prices rose 0.5% from March and are up 2.2% on an annual basis.

The unexpected jump in wholesale inflation comes as consumer prices, which measure inflation at the retail level, are also expected to have risen in April. The Labor Department will release its report on consumer prices on Wednesday.

Analysts forecast that consumer inflation edged lower to 3.4% in April after rising to 3.5% in March. However, progress towards taming inflation has seemingly stalled, creating uncertainty about when and how much the Federal Reserve will cut its benchmark interest rate this year.

Retail Sales Update

The Commerce Department also released its latest monthly tally of U.S. retail sales on Wednesday.

Analysts expect that retail sales rose 0.4% last month after jumping 1% in March. Shopping by consumers accounts for nearly 70% of the U.S. economy and retail sales are watched closely as a measure of economic health.

GameStop and AMC Entertainment: Short Sellers vs Memes Stocks

Short sellers were down about $1.2 billion on paper with GameStop up about 65% on Tuesday, and down $862 million on Monday with GameStop shares. About 63.2 million GameStop shares were recently sold short, representing roughly 23.7% of the float.

The surge in shares of GameStop and other meme stocks has been costing short sellers dearly as traders continue to bet against these companies only to see their share prices soar.

Inflation Reports and Rate-Cut Bets

The closely watched consumer-price index (CPI) measure of inflation is set for release on Wednesday. Investors want to see signs that price growth continues to cool, with risks remaining that indications of sticky inflation could push back rate-cut bets or even raise the prospect of another rate hike.

The Federal Reserve has signaled it is closely watching the inflation reports this week after an increase in price growth during the first quarter of the year. Central bank officials have indicated they expect to cut interest rates this year, but will not do so until they are confident that inflation is conquered.


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Confidence

95%

No Doubts Found At Time Of Publication

Sources

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Stocks are unchanged after latest U.S. inflation data: Live updates

CNBC News Lisa Kailai Monday, 13 May 2024 22:03
  • Unique Points
    • On Holding had their biggest one-day gain in over a year, climbing nearly 17.5% in midday trading after posting earnings and sales that surpassed analyst expectations.
    • Alibaba shed 7% despite revenue topping forecasts due to an 86% drop in net income for its fiscal fourth quarter.
    • Sony's U.S.-listed shares jumped 5.3% despite lower operating profits due to quarterly revenue of 3.5 trillion yen, above the consensus expectation.
    • Vodafone's U.S. shares popped 5% after posting full year profits that beat expectations.
  • Accuracy
    • On Holding shares had their biggest one-day gain in over a year, climbing nearly 17.5% in midday trading after posting earnings and sales that surpassed analyst expectations.
    • Sony’s U.S.-listed shares jumped 5.3% despite lower operating profits due to quarterly revenue of 3.5 trillion yen, above the consensus expectation.
    • Vodafone’s U.S. shares popped 5% after posting full year profits that beat expectations.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

92%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Wholesale inflation unexpectedly jumps again to highest level in a year

Fox Business Network Megan Henney Tuesday, 14 May 2024 17:03
  • Unique Points
    • Inflation at the wholesale level rose 0.5% in April from the previous month.
    • Prices are up 2.2% on an annual basis, the highest level since April 2023.
    • Core prices, which exclude food and energy, rose 0.5% for the month and are up 2.4% on a 12-month basis.
    • Both PPI and CPI are important measurements of inflation, with PPI believed to be a leading indicator of inflationary pressures as costs work their way down to consumers.
    • The Fed has signaled it is closely watching the inflation reports this week after an increase in price growth during the first quarter of the year. Central bank officials have indicated they expect to cut interest rates this year, but will not do so until they are confident that inflation is conquered.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (75%)
    The article contains editorializing and sensationalism. The author states 'High inflation is costing Americans an extra $1K a month' and 'Price hikes are particularly devastating for lower-income Americans.' These statements are not factual assertions by the author but rather emotional manipulation to elicit a response from readers. Additionally, the title of the article uses sensational language with 'unexpectedly jumps again to highest level in a year' which is not necessarily true as it was previously at this level before.
    • High inflation is costing Americans an extra $1K a month
    • Price hikes are particularly devastating for lower-income Americans
  • Fallacies (85%)
    The author makes an appeal to authority when quoting Chris Larkin's analysis of the inflation data. This is a fallacy as it does not prove the validity of the statement being made, but rather relies on the credibility of the source. Additionally, there are instances of inflammatory rhetoric used throughout the article to describe high inflation and its impact on Americans, particularly lower-income households.
    • But with last month's numbers revised lower, this report may not have been as much of an upside shock as it first appeared to be.
    • High inflation has created severe financial pressures for most U.S. households, which are forced to pay more for basics like rent, groceries and gasoline.
    • Price hikes are particularly devastating for lower-income Americans, because they tend to spend more of their already-stretched paycheck on necessities and therefore have less flexibility to save money.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Stock Market Today: Dow Flat After PPI Report; GameStop, AMC, Alibaba, Home Depot, Nvidia, Tesla, and More Movers

Barron's Financial Group Tuesday, 14 May 2024 17:04
  • Unique Points
    • Short sellers were down about $1.2 billion on paper with GameStop up about 65% on Tuesday.
    • Short sellers were down $862 million on Monday with GameStop shares.
    • About 63.2 million GameStop shares were recently sold short, representing roughly 23.7% of the float.
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

This Week: Producer prices, inflation check, April retail sales

The Associated Press News Monday, 13 May 2024 07:10
  • Unique Points
    • The Labor Department will release producer price data for April on Tuesday.
    • Wholesale inflation jumped in March and is expected to have edged higher in April.
    • The producer price index measures inflation at the wholesale level before businesses pass costs on to consumers.
    • Analysts forecast that the annual percent change of the producer price index was 2.2% in April.
    • The Labor Department will release consumer prices for April on Wednesday.
    • Consumer inflation is expected to have edged lower to 3.4% in April after rising to 3.5% in March.
  • Accuracy
    • Prices are up 2.2% on an annual basis, the highest level since April 2023.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication