Markets Rebound On Cool Inflation Data, Experts Await Wednesday's Consumer Price Report

December's Producer Price Index data came in cooler-than-expected Tuesday, rising 3.3% year-over-year, below forecasts of a 3.4% increase. Markets are reacting positively, but experts have mixed views on the latest inflation data. 

Expert Ideas: Charlie Ripley, senior investment strategist for Allianz Investment Management, said that the cooler-than-expected PPI data is "encouraging" ahead of Wednesday's Consumer Price Index print.  He noted that the weakness in prices was broad , with the exception of a notable rise in gasoline prices and some strength in airfares. 

Ripley also noted that the reaction in the bond market was muted, but said "we are expecting a wider range of outcomes following tomorrow’s release on the latest consumer price data."

Read Next: Supreme Court Hears TikTok Arguments With App’s Ban Ahead: ‘Essentially, The Platform Shuts Down’ 

Wharton professor and economist Mohamed A. El-Erian also pointed to slightly lower Treasury yields following December's PPI print as the markets await Wednesday's CPI data release. 

Economist and global strategist Peter Schiff acknowledged December's cool PPI data but highlighted rising commodity prices in a social media post. 

Markets React: All major U.S. indices are trading higher Tuesday with the SPDR S&P 500 ETF Trust (NYSE:SPY), tracking the S&P 500, 0.44% higher at $583.92 and the Invesco QQQ Trust (NASDAQ:QQQ), tracking the Nasdaq 100 index, 0.63% higher at $508.75 at the time of publication. 

Read Next: 

• Santa Ana Winds Return As LA Wildfire Damage Estimates Rise To At Least $250 Billion, Fire Officials Investigate Downed Power Lines

Photo: gary yim/Shutterstock.com