PPI required reading

For anyone interested in better understanding the PPI report (beyond what is usually written in MarketWatch), you can go and take a look at the Bureau of Labor Statistics (http://www.bls.gov/ppi/)

or you can just click on the following to view the February release: http://www.bls.gov/news.release/pdf/ppi.pdf

Note that between the PPI and the core PPI, it is the latter that is more closely followed since it is considered a much better indicator of the underlying real trend.

Last March 15th, the PPI came in higher than expected and Wall Street was able to overcame this as it focused on takeover news. However, the report did play a significant role in dampening hope of a rate cut. Given the reaction to the FOMC minutes earlier this week, and an all but gone idea of a FED easing, it'll be interesting to see how traders will react.