More Reports Hint Inflation Cooling off, Stocks Rise Again - InvestingChannel

More Reports Hint Inflation Cooling off, Stocks Rise Again

Stocks gained Thursday after another report pointed to cooling inflation.

The Dow Jones Industrials regained 119.82 points to open Thursday at 33,766.32.

The S&P 500 recovered 27.09 points to 4,119.04.

The NASDAQ restocked 159.22 points, or 1.3%, to 12,088.56.

The March producer prices index, a measure of prices paid by companies and often a leading indicator of consumer inflation, declined by 0.5% month over month versus expectations for prices to be flat. Excluding food and energy, the core wholesale prices reading shed 0.1% month over month, much better than the 0.2% increase expected by economists polled by Dow Jones.

Wednesday’s release of March’s consumer price index report showed headline inflation pressures eased last month. The CPI advanced just 0.1% month over month in March. Consumer prices grew 5% on an annual basis, the smallest increase in nearly two years.

Traders’ sentiment turned in the afternoon following the release of minutes from the March Federal Open Market Committee meeting. In particular, the Fed expects the recent banking crisis to cause a mild recession later this year.

Prices for the 10-year Treasury stood pat, keeping yields at Wednesday’s 3.40%.

Oil prices backpedaled 38 cents to $82.88 U.S. a barrel.

Gold prices took on $35.50 to $2,060.40 U.S. an ounce.

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