February PPI Hotter-Than-Expected

Inflation Report - The Producer Price Index (PPI) for February increased by +0.7%, significantly surpassing the consensus estimate of +0.3% and the revised January figure of +0.5%, marking the highest level since July of the previous year [1] - Core PPI, excluding food and energy, rose by +0.5%, which is 20 basis points above expectations and down from the revised +0.8% in January [2] - Year-over-year, headline PPI increased by +3.4%, the highest since January 2025, while core PPI reached +3.9%, the highest in 13 months [3] Economic Context - The recent Personal Consumption Expenditures (PCE) report showed an increase of over +3%, indicating challenges for the Federal Reserve in cutting interest rates amid ongoing inflation [4] Earnings Reports - Macy's (M) reported Q4 earnings of $1.67 per share, exceeding estimates of $1.53, with revenues of $7.64 billion, surpassing expectations by +1.53% but still lower than the previous year [5] - General Mills (GIS) reported fiscal Q3 earnings of 64 cents per share, missing estimates by 10 cents, with revenues of $4.44 billion, down from $4.84 billion a year ago [6] - Micron (MU) is expected to report fiscal Q2 earnings with a projected increase of +464% year-over-year and +139.7% in revenues, with shares up +62% so far in 2026 [7] - Five Below (FIVE) is anticipated to report earnings with expected gains of +14.7% year-over-year and +22.9% in revenues, with shares up nearly +14% this year [8]