September 13, 2017
Producer prices were unexpectedly weak in August though the report did not pick up any meaningful impact from Hurricane Harvey and the month-end jump in energy prices. The results raise an uncertain outlook for tomorrow's consumer price report which also may not reflect the gain in energy.
Trading was narrow in the stock market with the Dow rising 0.2 percent to a second straight record close, at 22,158. Demand for the safety of bonds continues to ease back slightly with the 10-year Treasury yield up 3 basis points to 2.20 percent. Higher Treasury yields often raise demand for the dollar as the dollar index bounced 0.6 percent higher to 92.43. Oil rose more than $1 to over $49 following an enormous hurricane-related draw in weekly gasoline inventories though wholesale prices for gasoline showed little change.