Stocks rise after PPI inflation data, S&P 500 and Nasdaq expected to rebound

U.S. stocks rose across the board on Tuesday as investors received the first of two major inflation reports this week, which showed prices rose less than expected in December. Also attracting attention is a report that the incoming Trump administration may increase tariffs more gradually to ease inflationary pressures.

The benchmark S&P 500 Index (^GSPC) was up about 0.4%, while the tech-heavy Nasdaq Composite Index (^IXIC) was up 0.6%, with both rebounding from Monday's losses. Meanwhile, the Dow Jones Industrial Average (^DJI) rose 0.4% after gains in the blue-chip index.

The producer price index, which tracks changes in business wholesale prices, rose 3.3% from last year, up from 3% in November but below economists' expectations. The month-on-month increase was 0.2%, which was also lower than expected. The report sets the stage for Wednesday's highly anticipated consumer inflation report.

Meanwhile, President-elect Donald Trump's team is considering rolling out promised tariff increases on a month-by-month basis, rather than a one-time increase, to help prevent a spike in inflation, Bloomberg reported.

Markets have been concerned that Trump's policies could intensify price pressures, which could limit the scope for the Federal Reserve to cut interest rates. But UBS strategists said gradual tariffs could still be “problematic” for the central bank's efforts to cool inflation.

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The dollar (DX-Y.NYB) retreated after five straight days of gains after the tariff report, while 10-year Treasury yields (^TNX) retreated from 14-month highs hit during Monday's bond selloff.

On the corporate front, shares of homebuilder KB Home (KBH) rose more than 10% in early trading after the company beat fourth-quarter earnings estimates.

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Stocks open higher
Stocks moved into recovery mode after the latest inflation data showed prices rose less than expected last month, while investors also digested a new report that the Trump administration may raise tariffs more gradually in the fight to lower inflation .
The benchmark S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) were both up about 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) was up about 0.6%.
DJI – Free real-time quotes Dollar

As of 9:42:04 AM ET. The market is open.
^DJI Innovations ^IXIC ^GSPC
PPI shows wholesale inflation rose less than expected in December
Wholesale prices rose less than expected in December, a positive sign for the economy amid recent concerns that inflation will not fall as quickly as hoped to the Fed's 2% target.
The U.S. Bureau of Labor Statistics reported on Tuesday that the Producer Price Index (PPI), which tracks changes in business prices, rose 3.3% from the previous year, up from 3% in November but lower than the 3.5% rise economists had expected. On a monthly basis, prices rose 0.2%, below economists' expectations of 0.4%.
Excluding food and energy, “core” prices rose 3.5% year-on-year, up from a 3.4% gain in November. Economists had expected growth of 3.8%. Meanwhile, core prices remained unchanged month-on-month, below economists' expectations for a 0.3% increase and the 0.2% increase last month.
Good morning. That's what happened today.
Goldman Sachs estimates wildfires' economic impact
A Goldman Sachs team said in a report this morning that combined property damage from the Eaton and Palisades fires is expected to exceed the most destructive single wildfire in California history, the 2018 Camp Fire.
Goldman Sachs estimates insured losses at $10 billion to $30 billion.
Here are the company's estimates of the near-term economic impact:

Stocks rise after PPI inflation data, S&P 500 and Nasdaq expected to rebound

Stocks open higher

PPI shows wholesale inflation rose less than expected in December

Good morning. That's what happened today.

Goldman Sachs estimates wildfires' economic impact