New economic data has been released today's pre-market, with the inflation gauge metric Producer Price Index (PPI) hitting the tape. Results were more tepid than expected: +0.1% for the month of April, down from the estimated +0.2-0.3% and the March read of +0.3%. Stripping out volatile food and energy prices, this number reached +0.2%, and +2.3% year over year.
Between the PPI and its sister survey, the Consumer Price Index (CPI), due out tomorrow ahead of the opening bell, these metrics are illustrative regarding how far and how fast inflation is seeping into the U.S. economy. After the March numbers, which were a bitter hotter than expected, market analysts suspected we may be at the precipice of rampant inflation, but today's numbers mute this notion.
Over time we tend to see the picture more clearly, but for now, expectations that the Fed will need to act more aggressively raising interest rates are not being ignited. Again, we look toward tomorrow's CPI numbers to complete this picture.
Boeing to Lose $20B on Iran Deal Pullout
With President Trump announcing an end to the Obama-era nuclear non-proliferation deal with Iran - removing the U.S. from the agreement still supported by other members Germany, France, China, Russia, the United Kingdom and the European Union as a whole - reports this morning on the world's biggest aircraft manufacturer, Boeing BA , are not good. Boeing stands to lose $20 billion for a contract to produce 110 new planes for Irani airline companies, mostly Iran Air.
The company will have either 90 or 180 days to sever the agreement with Iran, which will likely also be subject to renewed sanctions imposed by the U.S. There will reportedly be penalties for failing to do so, but these have yet to be determined. France-based Airbus will also be affected, according to reports, as will aircraft parts producer General Electric GE .
Q1 Earnings Activity Stays Heavy
Though most of the marquee names on the S&P 500 have already reported earnings in calendar Q1 2018, the amount of companies reporting remains very high. After today's market close we expect results from firms like 21st Century Fox FOXA , Roku ROKU and e.l.f. Beauty ELF , and ahead of the bell we have already seen results from the following:
Anheuser Busch/InBev BUD posted a mixed earnings report this morning, with 73 cents per share missing the Zacks consensus of 79 cents and down a penny from the year-ago quarter, but $13.1 billion in sales surpassed the expected $12.8 billion. Revenues for the beverage giant's main branding group - Budweiser, Corona and Stella Artois - rose nearly 8% year over year. For more on BUD's earnings, click here.
Generic drug maker Mylan MYL missed expectations on both top and bottom lines, putting up 96 cents per share which missed by 3 cents on revenues of $2.7 billion, slightly below the Zacks consensus $2.8 billion. Lower sales totals for featured products such as Epi-Pen were cited as partially responsible for the misses. For more on MYL's earnings, click here.