The markets will respond to the Producer Price Index, due to be released Monday morning, 8:30 AM. I checked the May Institute of Supply Management PMI report to see what Supply Managers were saying about price increases in May. The report indicates that raw materials prices increased for the 24th consecutive month, but at a slower rate in May. About 6% of survey respondents saw a reduction in prices.
The reduction is good and it is a slightly larger reduction that occurred last month. PPI was lower last month than the previous one, so we might conclude that PPI will be lower, too. That would represent some good news to start the week.
I am not an expert in reading these tea leaves and market
expectation will play a big part. Basically, I’ll watch the 8:30 PPI release on
CNBC and the reaction in the futures market.
