The KUIK Morning Market Report for Tuesday, December 12:
Markets are up.
Index
Direction
Change
Units
Index
Time
Change
Dow Jones Industrial Average
Up
94
points
24,480
7:08 AM
S&P500
Up
0.1%
percent
2,663
2.55
Nasdaq Composite
Down
0.0%
percent
6,874
(0.72)
30 Year Treasury
Down
(2)
Basis Points
2.79
Annual Yield
The National Federation of Independent Business reports its index of small-business optimism rose 3.7 points to 107.5 in November, the second-highest reading its 44-year history. Eight of the 10 components increased, led by what NFIB calls a “stunning and rare 16-point gain in expected better business conditions” and a 13-point increase in sales expectations. That suggests small businesses anticipate stronger economic growth, perhaps as high as 4% annually in the fourth quarter.
Inflation is up. The producer price index in November surged 0.4% for the third straight month, matching the MarketWatch forecast. That pushed the 12-month rate of wholesale inflation to 3.1%, the highest level since January 2012. Annual core inflation climbed to 2.4%, the highest rate since mid-2014. The cost of energy explains much of that rise but wholesale prices also rose for new cars and trucks, transportation and warehousing activities, travel-related services, loans and certain foods such as beef and pork. The cost of partially finished goods and raw materials have also climbed to the highest levels since the spring.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
