http://MikesDailyMarketReport.com: Today, we received inflation data for the Wholesale, which doesn't always receive the same respect as it's counter parts (CPI and PCE). The reason for the lesser importance is that Wholesalers don't always pass along the higher expenses to the Consumer; but obviously, they have a tolerance point and it needs to be passed along. And we've seen a lot of that over the past year! The Producer Price Index (PPI) rose 1.0% in January; and the Core PPI (excludes food and energy) rose 0.8%. After the higher revision for the Core PPI in December (going from 8.3% to 8.5%), then it dropped back down to 8.3% in January (vs Unchanged). Lastly, we have manufacturing data from NY region, which had contracted in January. In February, the Empire State Index rose up to 3.1, which didn't meet the forecasts of 12.15. Stocks are Up on news that Russia is working with NATO on diplomacy regarding Ukraine; and that possibly some of their border troops may have been returned to their previous base(s). Meanwhile, Investors are still searching for clues on possible rate hikes and clarificaion on the Fed's Balance sheet reduction. MBS are currently Down about 16bps (after they closed down 25bps, off from earlier lows); which means that Mortgage Rates continue to rise. Yields broke back above the 2.0% range and is sitting around 2.04%.
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