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U.S. stocks wobble as producer price report stokes fears about rates

AuthorLiz Moyer
Published 12/09/2022, 10:04 AM
Updated 12/09/2022, 10:45 AM
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks wobbled after a stronger-than-expected report on November producer prices renewed fears about the Federal Reserve’s interest rate hikes.

At 10:42 ET (15:42 GMT), the Dow Jones Industrial Average was down 42 points or 0.1%, while the S&P 500 was flat and the NASDAQ Composite was up 0.1%.

The Labor Department said producer prices rose 7.4% last month on an annual basis compared with economists' expectations of 7.2%. The pace did slow from October’s 8% gain. Core producer prices, which exclude food and energy, rose 6.2%. Wall Street expected a gain of 5.9%.

The numbers stoked fears that the Fed would keep rates higher for longer, following on a stronger-than-expected November jobs report and a strong services sector report. The Fed next meets on Tuesday for two days, and will release the decision on rates on Wednesday. Wall Street is expecting it to raise its benchmark rate by a half-percentage point.

The Fed raised the rate by 75 basis points for each of its last four rate decisions.

University of Michigan’s consumer sentiment reading for December was stronger than expected, too, coming in at 59.1 and beating the 56.9 expected.

Broadcom Inc (NASDAQ:AVGO) shares rose 3.1% after the chipmaker forecast higher-than-expected revenue for the current quarter. Lululemon Athletica Inc (NASDAQ:LULU) stock fell 12% after the athletic apparel maker gave a gloomier-than-expected outlook for holiday quarter results.

Oil was rising. Crude Oil WTI Futures were up 1.4% to $72.46 a barrel, while Brent Oil Futures were up 1% to $76.91 a barrel and Gold Futures were up 0.3% to $1806.

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Latest comments

US market is directionless. First they cry for Russia Ukraine war now they are crying for man made artificial recession. Like hollywood movies it seems like Americans thinking world has come to an end. haha..
Outside of Russian propaganda. most were crying against Russia's war.
November PPI expectations miss by 0.2% OMG, that jus soo strokes fear in my heart...NOT.
We should anticipate a significant sell-off Monday morning after today's artificial insemination.
Flagrant, criminal manipulation in broad daylight.  Can't have a loss on a Friday in the BIGGEST INVESTMENT JOKE IN THE WORLD.  Assume the proper position America.
that just put an end to any chances of a Santa Claus rally - meanwhile real time data every day is screaming huge recession whilst the FED is still cranking up rates - and inflation is still waaaaaay too high for wages to keep up - and debt just keeps mounting and mounting - big global recession and financial crisis just round the corner folks
Don't count on end of Santa rally. Alot of bonuses are tied to that year end number. If we do get one, sell into it.
Don't fret!! The big boys are still inflating the biggest bubble in history. The rug pull doesn't come until they short.. then look out below
Well, this scam that some call a market is now UP on the day. One couldn't conceive of a more ridiculous, rigged, and downright criminal way to run a market. Go ahead, steal all the put premium. Nobody cares! What an absolute joke!
whilst the likes of Apple are in the middle of their share buy back programme, they'll scam the market - they have a huge cash pile and the execs want their year end bonuses, so they'll keep pumping Apple stock and if they do that, they can prop up the US stock market - for a while at least - share buy backs are just hilarious, but that's what they're doing, hollowing out apple with very little in the way of R&D now - just milking the stock for as much profit for individuals as possible before it eventually tanks too - like Tesla!
Easy on the puts until January.
SPX & SPY option volumes have been trending up for many months
Why does the Fed have this much power? #AuditTheFed
so if you see the lamestream media slating Bitcoin and the best of crypto, you know they're media machine is dissuading folk to invest so that they can corner the market and buy it all up for themselves - FTX was an inside job - backed by the SEC - shake out all the weak retail hands with bots and shills on social media saying it's all a scam, but the fact it Larry Fink at Blackrock is going to buy up a whole load of the best crypto over the next six months, buying every dip - as am I!! whilst the trad financial system entirely collapses enabling the bankers to bring in Authoritarian CBDCs that will entirely control your life and you'll have no privacy in your financial life at all
Because the power to set monetary policy is not a power Congress wants.  It attracts too much criticism and politicians are in the business of being popular.  The Fed acts as Congress' lightning rod, and people whining about the Fed are falling for this ploy.
If Congress sets monetary policy, rates will frequently be too low for too long and ruin the economy.
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