I’m Back in the ‘Sandbox.’ Let’s Get Ready for PPI.
Here we go my friends! Once again I have the privilege of playing in Doug Kass’s sandbox for the day, and boy oh boy we will have a lot to chew through together.
Normally about now, I’m reviewing and compiling what will potentially go into the day’s “8 Key Things Shaping the Stock Market” but I’m going to hold that until after we get this morning’s August PPI report.
The consensus for that report has headline PPI rising 5.3% year over year, up from 4.7% in July. Core PPI is also expected to step up to 4.6% from July’s 4.2%.
But…
When we look at where oil, diesel, gas and other prices have moved to since the end of August and signs the Iran war is heating back up, we can see the argument about looking past the August PPI and tomorrow’s CPI data to focus on what the September data looks like.
And while we tend to steer away from getting political, preferring to focus on policy and outcomes, we also have the fact that President Trump commented that “Right after the election, oil prices are going to be tumbling downward.”
Thinking that comment through, it means that, best case, oil and related prices are likely to be elevated not only in September and October. And there are reasons to think even that best-case scenario is questionable.
It would be swell to have gas prices come tumbling down, but we’ve also heard the war with Iran was won and over more than a few times, and yet here we are.
When it comes to TheStreet Pro Portfolio, we’ll continue to follow the data and let it inform us, rather than making the herd-like mistake of superimposing what we want it to say, course correcting as needed.
That’s the Portfolio, but this is the Daily Diary, and we’ll have a lot more coming your way today.
Go get that first, second or if you’re like me, third cup of your preferred go juice (coffee here!), and I’ll have more for you in a jiffy.
Position: None
