Finally, investors received economic data that supports the possibility of a rate cut by the Federal Reserve later this year. The producer price index, an indicator of wholesale prices, rose 0.2% in December. Economists polled by Dow Jones had expected a rise of 0.4%. The so-called core PPI, which excludes food and energy prices, was flat against consensus expectations for a 0.3% rise. The report comes on the heels of a series of data showing strong price pressures that could limit the Fed's ability to cut interest rates in 2025. Despite Tuesday's encouraging announcement, some on Wall Street are still advising caution, said Peter Boockvar, chief investment officer at Bleakley Financial Group. “Interestingly, despite the headlines and core misses, the inflation break-even point has not changed and nominal yields, which initially fell, have flattened out on this date. Perhaps the reason is that the consumer price index (CPI) This is probably because PPI (CPI) is more important. [year over year] Instead, the focus is on numbers, which remain above 2%. '' Savita Subramanian, head of U.S. equities and quantitative strategy at Bank of America, said on CNBC's “Squawk Box.'' We took all of the Fed's share off the table. …Our economists are basically of the opinion that … we haven't reached the numbers that we need to see in terms of actually reducing inflation to a level that the Fed is happy with. I think we will see some reflation cycle in the first half of this year. ” Andrew Brenner of NatAlliance Securities: “The PPI numbers were much better than expected, but the reason behind it appears to be a one-off, with a significant decline.” Chief Investment Officer of SWBC Investment Services Others, such as Chris Brigati of “Concerns that we are on the brink of accelerating inflation have subsided,” he said in a note. Wall Street's attention is currently focused on Wednesday's Consumer Price Index report, which is the more closely watched of the two, if the numbers point to sustained inflation. , Elsewhere on Wall Street on Tuesday morning, Goldman Sachs upgraded Lidar stock Hesai from Neutral to Buy, arguing that Lidar is a detection system similar to radar that uses laser light. “We believe Hexi is well-positioned to benefit from China.” [new energy vehicle] “Market adoption of NOA (Navigation on Autopilot) will begin in 2025E, promoting the use of LiDAR in mass-market vehicle models with the launch of lower-cost products,” Goldman said.
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