{"id":1007,"date":"2023-02-16T10:47:35","date_gmt":"2023-02-16T15:47:35","guid":{"rendered":"https:\/\/embarrdowns.com\/producer-prices-rebound-initial-unemployment-claims-decline-shopify-shop-tumbles-on-q1-forecast\/"},"modified":"2023-02-16T10:47:36","modified_gmt":"2023-02-16T15:47:36","slug":"producer-prices-rebound-initial-unemployment-claims-decline-shopify-shop-tumbles-on-q1-forecast","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/producer-prices-rebound-initial-unemployment-claims-decline-shopify-shop-tumbles-on-q1-forecast\/","title":{"rendered":"Producer Prices Rebound; Initial Unemployment Claims Decline; Shopify (SHOP) Tumbles on Q1 Forecast"},"content":{"rendered":"

On Thursday, the US Bureau of Labor Statistics reported that the Producer Price Index for final demand increased 0.7% in January, seasonally adjusted.[0]<\/a><\/sup> This was a rebound from the previous month’s 0.2% decline and the largest advance since June 2022. Prices for final demand goods rose 1.2%, with a 5.0% increase in energy prices leading the way.[1]<\/a><\/sup> In addition, prices for final demand services increased 0.4%.[2]<\/a><\/sup> Excluding foods, energy, and trade services, the index for final demand rose 0.6%.[3]<\/a><\/sup><\/p>\n

The annual rate of the input Producer Price Index (PPI) has now been positive for 26 consecutive months. The annual rate of PPI input prices decreased to 14.1% in the 12 months ended January 2023, down from 16.2% in the year to December 2022. In the 12 months leading up to January 2023, producer output (factory gate) prices increased by 13.5%, a decrease from 14.6% in the year prior to December 2022.[4]<\/a><\/sup> The greatest decreases in the annual rates of input and output inflation were due to inputs of crude oil and petroleum products, respectively.[4]<\/a><\/sup> On a monthly basis, producer input prices decreased by 0.1%, and output prices increased by 0.5% in January 2023.[4]<\/a><\/sup><\/p>\n

Meanwhile, US weekly initial unemployment claims unexpectedly fell 1,000 to 194,000, showing a stronger labor market than expectations of an increase to 200,000.[5]<\/a><\/sup> In addition, US consumer prices rose 0.5% month-on-month in January, in line with economist estimates.[6]<\/a><\/sup><\/p>\n

Shopify (SHOP) tumbled more than 9% in pre-market trading after forecasting Q1 revenue growth in the high-teen percentages, weaker than the consensus of 20%.[5]<\/a><\/sup> Investors are likely to focus on speeches from Fed officials Mester and Bullard for further clues on the Fed\u2019s rate hike path.[7]<\/a><\/sup> Core PPI rose 0.5% in January, and 5.4% from a year earlier.[6]<\/a><\/sup><\/p>\n

0. <\/span>“US Producer Prices Exceed Forecast in Biggest Gain Since June” Bloomberg, 16 Feb. 2023, https:\/\/www.bloomberg.com\/news\/articles\/2023-02-16\/us-producer-prices-exceed-forecast-in-biggest-gain-since-june<\/a><\/a><\/p>\n

1. <\/span>“Producer Prices Rose 0.7% in January” Floor Focus, 16 Feb. 2023, https:\/\/www.floordaily.net\/flooring-news\/producer-prices-rose-07-in-january<\/a><\/a><\/p>\n

2. <\/span>“US producer prices rise more quickly than expected in January” ShareCast, 16 Feb. 2023, https:\/\/www.sharecast.com\/news\/international-economic\/us-producer-prices-rise-more-quickly-than-expected-in-january–12367360.html<\/a><\/a><\/p>\n

3. <\/span>“Producer price index reacclerates in January” Seeking Alpha, 16 Feb. 2023, https:\/\/seekingalpha.com\/news\/3937158-producer-price-index-reacclerates-in-january<\/a><\/a><\/p>\n

4. <\/span>“Producer price inflation, UK: January 2023” Forex Factory, 15 Feb. 2023, https:\/\/www.forexfactory.com\/news\/1205738-producer-price-inflation-uk-january-2023<\/a><\/a><\/p>\n

5. <\/span>“Markets Today: Stock Index Futures Tumble as U.S. Jan PPI Exceeds Forecasts” Barchart, 16 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14268583\/markets-today-stock-index-futures-tumble-as-u-s-jan-ppi-exceeds-forecasts<\/a><\/a><\/p>\n

6. <\/span>“Producer Prices Rose, Pointing to Persistent Inflation” MarketWatch, 16 Feb. 2023, https:\/\/www.marketwatch.com\/story\/producer-prices-rose-pointing-to-persistent-inflation-4dda60ef<\/a><\/a><\/p>\n

7. <\/span>“S&P Futures Tick Lower Ahead of Key U.S. PPI Data” Barchart, 16 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14260125\/s-p-futures-tick-lower-ahead-of-key-u-s-ppi-data<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

On Thursday, the US Bureau of Labor Statistics reported that the Producer Price Index for final demand increased 0.7% in January, seasonally adjusted.[0]<\/a><\/sup> This was a rebound from the previous month’s 0.2% decline and the largest advance since June 2022. Prices for final demand goods rose 1.2%, with a 5.0% increase in energy prices leading the way.[1]<\/a><\/sup> In addition, prices for final demand services increased 0.4%.[2]<\/a><\/sup> Excluding foods, energy, and trade services, the index for final demand rose 0.6%.[3]<\/a><\/sup><\/p>\n

The annual rate of the input Producer Price Index (PPI) has now been positive for 26 consecutive months. The annual rate of PPI input prices decreased to 14.1% in the 12 months ended January 2023, down from 16.2% in the year to December 2022. In the 12 months leading up to January 2023, producer output (factory gate) prices increased by 13.5%, a decrease from 14.6% in the year prior to December 2022.[4]<\/a><\/sup> The greatest decreases in the annual rates of input and output inflation were due to inputs of crude oil and petroleum products, respectively.[4]<\/a><\/sup> On a monthly basis, producer input prices decreased by 0.1%, and output prices increased by 0.5% in January 2023.[4]<\/a><\/sup><\/p>\n

Meanwhile, US weekly initial unemployment claims unexpectedly fell 1,000 to 194,000, showing a stronger labor market than expectations of an increase to 200,000.[5]<\/a><\/sup> In addition, US consumer prices rose 0.5% month-on-month in January, in line with economist estimates.[6]<\/a><\/sup><\/p>\n

Shopify (SHOP) tumbled more than 9% in pre-market trading after forecasting Q1 revenue growth in the high-teen percentages, weaker than the consensus of 20%.[5]<\/a><\/sup> Investors are likely to focus on speeches from Fed officials Mester and Bullard for further clues on the Fed\u2019s rate hike path.[7]<\/a><\/sup> Core PPI rose 0.5% in January, and 5.4% from a year earlier.[6]<\/a><\/sup><\/p>\n

0. <\/span>“US Producer Prices Exceed Forecast in Biggest Gain Since June” Bloomberg, 16 Feb. 2023, https:\/\/www.bloomberg.com\/news\/articles\/2023-02-16\/us-producer-prices-exceed-forecast-in-biggest-gain-since-june<\/a><\/a><\/p>\n

1. <\/span>“Producer Prices Rose 0.7% in January” Floor Focus, 16 Feb. 2023, https:\/\/www.floordaily.net\/flooring-news\/producer-prices-rose-07-in-january<\/a><\/a><\/p>\n

2. <\/span>“US producer prices rise more quickly than expected in January” ShareCast, 16 Feb. 2023, https:\/\/www.sharecast.com\/news\/international-economic\/us-producer-prices-rise-more-quickly-than-expected-in-january–12367360.html<\/a><\/a><\/p>\n

3. <\/span>“Producer price index reacclerates in January” Seeking Alpha, 16 Feb. 2023, https:\/\/seekingalpha.com\/news\/3937158-producer-price-index-reacclerates-in-january<\/a><\/a><\/p>\n

4. <\/span>“Producer price inflation, UK: January 2023” Forex Factory, 15 Feb. 2023, https:\/\/www.forexfactory.com\/news\/1205738-producer-price-inflation-uk-january-2023<\/a><\/a><\/p>\n

5. <\/span>“Markets Today: Stock Index Futures Tumble as U.S. Jan PPI Exceeds Forecasts” Barchart, 16 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14268583\/markets-today-stock-index-futures-tumble-as-u-s-jan-ppi-exceeds-forecasts<\/a><\/a><\/p>\n

6. <\/span>“Producer Prices Rose, Pointing to Persistent Inflation” MarketWatch, 16 Feb. 2023, https:\/\/www.marketwatch.com\/story\/producer-prices-rose-pointing-to-persistent-inflation-4dda60ef<\/a><\/a><\/p>\n

7. <\/span>“S&P Futures Tick Lower Ahead of Key U.S. PPI Data” Barchart, 16 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14260125\/s-p-futures-tick-lower-ahead-of-key-u-s-ppi-data<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1006,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1007"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1007"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1007\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1006"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1007"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1007"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1007"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}