Stocks are trending higher to begin Tuesday’s trading session as Q4 earnings continue to roll in. JP Morgan Chase missed on top line quarterly profit, citing fixed income trading as the cause. Equities are well off the lows carved out on Christmas Eve; however, optimism on the street remains muted in the midst of a U.S. government shutdown, trade/tariff developments, and political uncertainty. The S&P500 is currently trading at 2,594.91, 0.48% higher.
Treasuries are moving higher in the AM, bolstered by the biggest drop in wholesale inflation in the past five months. The Producers Price Index (final demand) came in at a 0.2% drop for the month of December, versus analyst estimates of a 0.1% decrease. YoY, PPI remained unchanged at 2.5%, well under the 12-month, 7-year peak of 3.4% notched last July. It looks like much of the weakness we’re seeing in December’s reading was due to a steep drop in oil prices. The U.S. 10-Yr Note is currently trading at 2.7023%, 0.0001 lower.