Stock Market Update

The stock market is on track for a higher opening, as equity futures have risen following the June PPI report.

The index for final demand was unchanged month-over-month in June (Briefing.com consensus: 0.2%) following an upwardly revised 0.3% increase (from 0.1%) in May.

The index for final demand, less foods and energy, was also unchanged month-over-month (Briefing.com consensus: 0.2%) following an upwardly revised 0.4% increase (from 0.1%) in May. The index for final demand was up 2.3% year-over-year, versus 2.7% in May, while the index for final demand, less foods and energy, was up 2.6% year-over-year, versus 3.2% in May.

The key takeaway for the market is the disinflation seen on a month-over-month and year-over-year basis. That is clearly moving in the Fed's preferred direction, and the unchanged readings for June should foster good thoughts about what the PCE Price Index for June will show when it is released.

Additionally, several major banks released earnings reports this morning, with the majority beating EPS expectations. Yesterday's pre-market earnings were much in the same, but a more concerning June CPI report and some sell-the-news action ultimately saw the financials sector finish in negative territory. 

Just released, Industrial production increased 0.3% month-over-month in June (Briefing.com consensus 0.1%) following an upwardly revised 0.0% (from 0.1%) in May.

The capacity utilization rate was 77.6% (Briefing.com consensus 77.4%), up from a revised 77.5% (from 77.4%) in May.