US Stock Futures Fall, Treasury Yields Jump after Hotter-than-Expected PPI Data

Producer Prices rose more than predicted in November, stifling hopes that inflation could be trending lower, the Labor Department reported Friday.

The producer price index, a measure of what companies get for their products in the pipeline, increased 0.3% for the month and 7.4% from a year ago. Economists surveyed by Dow Jones had been looking for a 0.2% gain.

Excluding food and energy, core PPI was up 0.4%, also against a 0.2% estimate.

Dow Futures Slide 150 Points after Hotter-than-Expected Wholesale Inflation Report

Stock futures fell Friday after wholesale prices rose more than expected in November. Futures tied to the Dow Jones Industrial Average fell 155 points, or 0.5%. S&P 500 Index futures and NASDAQ 100 futures shed 0.5% and 0.6%, respectively.

Treasury Yields Rise after PPI Upside Miss

U.S. Treasury yields rose after the PPI data missed to the upside. Consequently, the U.S. Dollar rose against a basket of major currencies with the Euro turning lower for the session. The interest rate sensitive USD/JPY is still down for the session, but off its lows.

Gold prices are also posting a small gain, but trading well off its highs.

The price action is likely being limited ahead of next Tuesday’s release of the U.S. Consumer Inflation report and Wednesday’s Federal Reserve interest rate, policy decisions and economic projections.

Consumer Sentiment Data on Tap

The University of Michigan’s preliminary December reading on the overall index on consumer sentiment is expected to have improved after slumping in November. The data is due at 15:00 GMT.