Stocks fell Friday after wholesale prices rose more than expected in November, putting a damper on some hopes that inflation may be cooling off.
Shortly after the opening bell on Wall Street, the S&P 500 was off 0.3%, the Dow off 0.2%, and the Nasdaq down 0.3%.
November’sproducer price index showed wholesale prices rise 0.3%last month and 7.4% over the previous year. That topped the 0.2% gain expected by economists polled by Dow Jones. Core PPI, which excludes food and energy, rose 0.4%, topping an estimate of 0.2%.
Investors are bracing for next week’s busy economic calendar, with another key inflation print — the consumer price index — due, and expected to show whether inflation is subsiding.
The Federal Reserve is also expected to deliver a 50 basis point hike at the conclusion of its December policy meeting. While the increase would be smaller than the previous four hikes, concerns have mounted over whether the central bank can architect a soft landing and prevent a recession.
“I think we need to wait to get the CPI number next week, but I will say that this figure, the PPI this morning, is certainly a disappointment,” Brenda Vingiello, chief investment officer at Sand Hill Global Advisors said, adding that recent data is “stacking up in favor” of continued hiking from the Fed.
Friday’s move come after the S&P 500 snapped its longest losing streak since October. The Nasdaq posted the strongest performance Thursday, rallying 1.13%.
Even with those gains, all three major averages are on track for weekly losses. The S&P 500 is off by 2.6%, while the Nasdaq is down more than 3%. The Dow shed 1.8%.
In other news, shares ofLululemonfell more than 6% after the company gave a weaker-than-expected fourth-quarter outlook. Bath & Body Works’ stock gained asDan Loeb revealed a boost in his stake.