Market Reacts To PPI Inflation Drop: 7 Stocks in the Spotlight Thursday

U.S. producers saw another lower-than-expected inflation report on Thursday, indicating that pandemic price pressures virtually evaporated in June.

The producer price index (PPI) inflation was 0.1% year-on-year in June, down sharply from 0.9% in May and 0.4% lower than expected, setting a new low for a nearly three-year period. In monthly terms, producer prices rose 0.1%, rebounding from the 0.4% drop seen in May, but still below expectations of a 0.2% increase.

Notable price shifts for producer goods and services were recorded in gas prices, which jumped 3.4% on the month, and transportation freight costs, which fell 2.1%. Iron and steel scrap also plummeted 10.8%.

Among services increases, food and alcohol retailing, traveler accommodation, insurance, hospital inpatient treatment and airline passenger services all rose. Price increases in goods were recorded in electricity, meat, veal, chicken eggs and medical, surgical and personal help gadgets

Food and alcohol wholesaling and residential real estate loans indexes dropped, as well as diesel fuel, oilseeds and industrial chemicals.

Investors are heavily wagering the Fed will raise rates once in July and then stop tightening. According to CME Group‘s FedWatch Tool, the possibility of an additional hike in September is 11%, while the probability of an additional hike in November is 19%.

Thursday’s Stock Movers

Plug Power Inc. PLUG: PLUG surged over 8% after securing an order of 100 MW of proton exchange membrane electrolyzers for a green hydrogen project in Europe. The electrolyzers, which will be delivered and installed in 2024, will be powered by 100% renewable energy and generate 43 tons/day of green hydrogen, allowing the corporation to eliminate 516 tons/day of carbon dioxide.

The Progressive Corporation PGR fell 10%, on track for its largest daily decline since October 2008, as the company reported lower-than-expected results last quarter.

Nikola Corp. NKLA rose 14% after hydrogen provider BayoTech announced plans to “purchase up to 50 Nikola Class 8 fuel cell electric vehicles over the next five years, with the first 12 trucks arriving in 2023 and 2024.”

Cryoport Inc. CYRX plummeted 25% after the life sciences industry logistics service provider lowered its revenue forecast for 2023 late on Wednesday, citing an abrupt decrease in demand for its cryogenic freezer equipment.

Carvana Co. CVNA dropped 7% after JPMorgan Securities downgraded the company from Neutral to Underweight and lowered the price target to $14.

Viasat Inc. VSAT collapsed 30%, on track for its worst daily loss on record, as a result of an anomaly during the deployment of its ViaSat-3 Americas satellite in space, which may affect the satellite’s functionality.

Palo Alto Networks, Inc. PANW rose 4% after JPMorgan Securities lifted the price target on Palo Alto Networks from $255 to $300, maintaining an Outperform rating.

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