Stocks are trending higher at the open after the Labor Department's producer price index (PPI), which tracks inflation before it reaches consumers, rose 0.2% from May to June. Excluding volatile food and energy prices, core wholesale inflation climbed 0.4% monthly and 3% annually. Service sector price increases, particularly higher profit margins for machinery and auto wholesalers, drove the overall rise. In contrast, goods prices fell 0.5%, with gasoline and food prices experiencing significant drops.
Big banks are reporting their earnings for the quarter. JPMorgan Chase (JPM) is trading lower, despite exceeding analyst expectations for both earnings and revenue. Wells Fargo (WFC) also beat estimates for earnings and revenue, but their stock price is also dropping. In addition, Citigroup's (C) stock is lower after reporting better-than-expected earnings. One disappointment across the board seems to be net interest income, which fell short of investor expectations. This could be a point of concern for the banking industry.
