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Major market averages started Friday’s trading session off mixed after the latest July producer price index report hit.
The Nasdaq Composite (COMP.IND) was -0.5%, the S&P 500 (SP500) was -0.1%, and the Dow (DJI) was +0.1%.
Going into Friday’s trading, the S&P 500 was off 0.2% and the Dow was up 0.3%. The Nasdaq faced a bigger struggle to avoid two losing weeks in a row, as it was off 1.2%.
The 10-year Treasury yield (US10Y) was up 5 basis points to 4.13%. The 2-year yield (US2Y) rose 6 basis points to 4.88%.
See how yields are trading across the curve at Seeking Alpha’s bond page.
“On the yield front (Thursday), late in the session a tough 30-year auction undid some of the positivity from the decent 3 and 10yr auctions earlier in this first week of the new larger refunding wave,” Deutsche Bank’s Jim Reid said. “That led to 10yr US yields +9.5bps on the day and after the auction, but 16.7bps higher than the lows shortly after the CPI print. So another volatile but ultimately negative day for US bonds.”
On the economic calander, the July PPI data came in higher than expected at +0.3% versus the consensus of +0.2%. Core PPI which excludes food and energy came in at +0.3% compared to the forecasted +0.2% level.
“This more accurately captures corporate pricing power, although it misses out on much of the profit-led inflation story (which is mainly a relative price move),” UBS’ Paul Donovan said.
Moreover, the University of Michigan’s early measure of August consumer sentiment arrived at 71.2 versus the expected read of 71.0.
See the stocks making the biggest moves this morning.
