PPP doubled expectations today at 0.4%.. and the Annual PPI just surpassed CPI rate for the first time since 2022- Unemployment came in at 240k also about 20k higher, but traders are paying more attention to PPI as this is a leading indicator for Consumer Price inflation (Less so for Core PCE which is the indicator the Fed looks at) Given the confusing data between yesterday and today, there's enough to justify a data dependent stance from the Fed. Bond yields are higher by 0.02 bps while S&P Futures lower by -0.25%. Key levels traders will want to keep a close eye on revolve around Tuesday's lows at 6029.89 for ES (undercutting would be a mild negative and postpone rally) (This level is 6039.75 for ES -0.33% _F) while the ability to take out yesterday's highs in SPX at 6029.59 would be a green light for new highs. At present, not tooo much early morning volatility ahead of the bell but fractional weakness in both Stocks and Treasuries while DXY has continued its early week bounce as ECB cut for the 3rd time and data there looks weaker, resulting in EURUSD decline.

CPI comes in in-line at +0.3% MoM, and 2.7% YoY causing a bit of a pop in US Equity futures and pullback in 2yr yields. largely keeps the Fed's CUT plans intact as Swap market shows an 86% chance of a 25bp Cut. However, this is the largest print in 7 mths, but nonetheless, a largely expected result for today. Used cars only moderately higher, and Owners Equivalent rent at 0.2% is half of last month, so some progress on inflation in housing. and big progress on both of these