July 11, 2018
Producer prices are showing pressure especially at wholesalers and retailers which, ahead of tomorrow's consumer price report, raises the question of pass through to final prices. Grabbing the day's headlines, however, are additional threats of U.S. tariffs, this time on $200 billion worth of Chinese imports.
A big drop in weekly oil inventories made for a very big drop in the price of West Texas Intermediate, down more than $3 on the day but still above $70 at just over $70.50. Gold also fell, down about $15 and near $1,240. Stocks retreated with the Dow, after two days of gains, down 0.9 percent to 24,700. Interest rates held steady but not the dollar index which rose a sharp 0.6 percent to 94.72.