Back to top

View the PFP Archive

Stocks closed higher yesterday with the big three indexes gaining ground as the day wore on. The Nasdaq also hit a new milestone, making a new all-time high close.
Kevin Matras   
Profit from the Pros
By Kevin Matras
Executive Vice President
Zacks Investment Research

Stocks Closed Higher Yesterday, CPI Inflation Report On Deck This Morning

Stocks closed higher yesterday with the big three indexes gaining ground as the day wore on. The Nasdaq also hit a new milestone, making a new all-time high close.

Yesterday's Producer Price Index (PPI) inflation report came in a bit higher than expected. The headline number rose 0.5% m/m vs. last month's downwardly revised -0.1% (from 0.2%), and views for 0.3%. On a y/y basis it came in at 2.2% vs. last month's downwardly revised 1.8% (from 2.1%), and estimates for 2.2%. The core rate (ex-food & energy) was up 0.5% m/m vs. last month's downwardly revised -0.1% (from 0.2%), and the consensus for 0.2%. The y/y rate came in at 2.4%, the same as last month, and only slightly higher than the estimates for 2.3%. Looking at the numbers excluding food, energy & trade services, it was up 0.4% m/m vs. last month's 0.2%, while the y/y rate was up 3.1% vs. last month's 2.8% pace.

The report could have been worse. And the downward revisions were a bit of a surprise. All in all, it allowed the market to shrug it off and add to their gains.

Although, we'll get another look at inflation this morning with the Consumer Price Index (CPI) inflation report. The PPI is wholesale inflation. The CPI is retail inflation. The estimates are for headline CPI to come in at 0.3% m/m vs. last month's 0.4%, while the y/y rate comes in at 3.4%, down from last month's 3.5%. The core rate is expected to come in at 0.3% m/m vs. last month's 0.4% pace, with the y/y rate coming in at 3.6%, down from last month's 3.8%.

Those would be fine numbers if the consensus was met. And it would suggest that disinflation is back on.

That report comes out at 8:30 AM ET.

Yesterday, Fed Chair Jerome Powell, commented on the outlook for interest rates while participating in a discussion at the Annual General Meeting of the Foreign Bankers' Association in Amsterdam. He reiterated the idea that rates could be held higher for longer, but also dismissed the idea of raising rates by saying "the next move that we make would be more likely to hold the policy rate where it is."

He also lauded the strength of the U.S. economy by noting it's "been performing very well lately."

A strong economy, high enough interest rates to keep inflation from rising in any meaningful way, while also allowing the economy to expand, is a recipe for continued gains in the market.

In addition to this morning's CPI report, we'll also get MBA Mortgage Applications, the Housing Market Index, Retail Sales, the Empire State Manufacturing Index, and Business Inventories.

Should be a busy day. And if all goes well, we could be at new all-time highs by day's end.

See you tomorrow,

Kevin Matras

Executive Vice President, Zacks Investment Research


The "Oracle of Omaha" has started investing heavily in AI...


AI can no longer be considered a fad. Even former skeptic Warren Buffett is now investing heavily in artificial intelligence stocks. With chip stocks like Nvidia soaring, some investors wonder if they've already missed the boat. Fortunately, a new phase of AI has begun - and it has everything to do with software.

See why this could be the perfect time to get in

Most Popular Articles from

Image: Bigstock

Institutional vs. Retail Stocks: Understanding the Difference

Thus far this week, the retail investor has owned the day. Read More »

Image: Bigstock

3 Tech Acquisitions YTD Likely to Reshape Sector Dynamics

As these tech companies join forces, their complementary strengths are poised to reshape the industry landscape. Read More »

Image: Bigstock

Meme Stocks Are Roaring Again

Meme stocks are back in fashion, with several seeing parabolic moves as of late. Read More »

Image: Bigstock

Shift Into High Gear With These 2 Domestic Auto Stocks

These auto stocks are well-positioned to drive gains to your portfolio. Read More »

Image: Bigstock

This Week's 5 Must-See Earnings Surprise Charts

There are more big technology names reporting along with old economy stocks in the industrial and agriculture industries. Read More »


Get Your Free Copy of Finding #1 Stocks - A $49.95 Value

Starting today, you can claim a free copy of Finding #1 Stocks by Zacks' EVP Kevin Matras. You don't even have to pay for shipping! Its 300 pages unfold virtually every trading secret he has learned over the last 25 years to beat the market. Here's what's inside:

  • See the exact formulas of strategies that produced gains up to +62.6% in 2023 - more than double the market's +26.2%.
  • How to spot bullish set-ups and bearish break-downs to stay ahead of the market…
  • Traits to determine the type of trader you are and finding stocks with highest probability of success…
  • Kevin's personal all-time favorite screening strategy…
  • And much more!

This limited-time offer will end Saturday, May 19 or when our inventory is depleted. Don't miss this unique opportunity.

Get your FREE book now »

Image: Bigstock

Bull of the Day: Nvidia (NVDA)

Data center and AI growth, top-tier fundamentals, and new product offerings are just a few reasons to own Nvidia, the true market leader. Read More »

New Zacks Strong Buys for May 15th

Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. Read More »


Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on

Download our Zacks App for Apple iOS
Download our Zacks App for Android

Visit Success Stories to hear how Zacks research, tools and portfolios help our members outperform the market.