At 8:30 a.m. ET, we’ll get the February producer price index report.
Economists estimate producer prices climbed by 0.3% month-over-month or 0.0% year-over-year. Excluding food and energy, core PPI is estimated to have climbed by 0.1% and 1.6%, respectively.
Here’s Morgan Stanley: “Wholesale gasoline prices rebounded about 20% between the February and January PPI survey periods after falling 23% in January. With some offset from weak natural gas prices, we look for overall PPI energy to gain 6% after falling 10% last month. Substantial weakness in services prices in January, most notable in healthcare, led to a 0.3% plunge in core (ex food, energy, and trade services) PPI in January. We look for a partial rebound in services along with soft core goods prices to lead to a slight rebound in the core in February. Our monthly estimates would boost the headline year/year pace to 0.4% from 0.0% and leave the core unchanged at 0.9%.”