Stock Market Update

The stock market is on track for a modestly higher opening this morning as investors react to the March PPI release and a busy slate of earnings reports.

The Producer Price Index for final demand increased 0.5% month-over-month in March (Briefing.com consensus: 1.2%) following a downwardly revised 0.5% increase (from 0.7%) in February. The index for final demand, less foods and energy, rose just 0.1% (Briefing.com consensus: 0.4%) following a downwardly revised 0.3% increase (from 0.5%) in February.

These changes left the index for final demand up 4.0% year-over-year, versus 3.4% in February, and the index for final demand, less foods and energy, up 3.8% year-over-year, unchanged from February.

The key takeaway from the report is that the inflation seen at the wholesale level in March was driven largely by energy prices and gasoline prices (+15.7%) in particular. The index for final demand services was unchanged, so the market is giving itself some latitude to look through the energy price shock as something that is temporary.

On the earnings front, Citigroup (C 128.24, +1.96, +1.6%) beat EPS expectations by $0.43, beat revenue expectations, and sees Net Interest Income excluding Markets up 5-6% for FY26.