Producer Price Index Increased Less Than Expected

Economic Indicators - The November Producer Price Index (PPI) showed a month-over-month increase of +0.2%, up from a revised +0.1% in October, but below the consensus estimate of +0.3% [2] - The core PPI, excluding food and energy, remained unchanged at 0.0% for November, down from a revised +0.3% in October [3] - Year-over-year PPI increased to +3.0% from a revised +2.8%, marking the first time it has reached a "3-handle" since September [4] - The core PPI year-over-year also reached +3.0%, 10 basis points higher than the unchanged +2.9% from October [4] - Excluding food, energy, and trade, the year-over-year PPI rose to +3.5%, the highest since March of the previous year [4][5] Retail Sales - U.S. Retail Sales for November reported a headline increase of +0.6%, surpassing the estimated +0.4% and a significant rise from the revised -0.1% in the prior month [6] - Excluding autos, Retail Sales still showed a strong increase of +0.5%, more than double the revised +0.2% from October [6] - Core Retail Sales, excluding autos and gasoline, were +0.4% for the month, down from +0.6% in the previous report, indicating continued consumer spending [7] Bank Earnings - Major banks reported Q4 earnings, with Citigroup, Bank of America, and Wells Fargo all exceeding bottom-line estimates: Citigroup at +$1.81 per share, Bank of America at $0.98, and Wells Fargo at $1.76 [8] - Citigroup benefited from reduced provisions for troubled loans, while Wells Fargo experienced a revenue miss due to higher-than-expected severance costs [9] - Bank of America reported an increase in Net Interest Income for the quarter, with both BofA and Citi having only missed bottom-line estimates once in the past five years [9]