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."

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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. 

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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 SPY, tracking the S&P 500, 0.44% higher at $583.92 and the Invesco QQQ Trust QQQ, tracking the Nasdaq 100 index, 0.63% higher at $508.75 at the time of publication. 

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