Yahoo Finance Live anchors discuss September Producer Price Index (PPI) data.

Video Transcript

[AUDIO LOGO]

BRAD SMITH: No relief. Producer price index increased 0.4% in September month-over-month, versus 0.2% that was expected here. Now, PPI excluding food and energy. That was in line with expectations, rising 0.3% on the month and 7.2% year-over-year here.

This is a big week, of course, for some of the price indexes, producer price index. PPI today. We also get CPI this week. And it's really kind of been interesting to track, at least from the perspectives of what the White House is reading into economically, as well as what some of the largest banks are saying around this.

We heard from, of course, JPMorgan Chase CEO Jamie Dimon. And all of this as it relates to what the Fed is going to do in reaction to all of the readings that are coming forth on the pricing index front.

And particularly here, even within the meeting minutes that are slated to come out, it is a larger question of, what will the Fed policy look like, even after some of the newer readings that are starting to come out? Because this is still backwards-looking data. And so when will it actually begin to show up in some of the numbers the Fed policy that they've already enacted to this point?

BRIAN SOZZI: Shows up in that Target picture we were just showing. I think that's my local store because every time I go down that frozen food section, everything is inflationary.

But look, we saw the futures come down off the highs of the session, off this report. And this is the same reaction, I would argue, of what we saw coming off of that jobs report last week. After what we saw, some hot reads on manufacturing. Surprisingly hot.

The market doesn't like any signs of hot data. Sets the table for a potentially hotter-than-expected CPI report, I would argue, tomorrow and maybe more pressure on the market. Now, we're seeing Dow futures tick into the negative here. This a market that is rewarding bad news not, good news.

JULIE HYMAN: It's interesting. I heard someone commenting this morning that the framing now is that inflation is peaking, or you used some kind of present tense instead of "has peaked" or "when it's gonna peak." That it's this process, right?

BRIAN SOZZI: Heard that from Pepsi.

JULIE HYMAN: And process by which you're gonna see still elevated readings for a little while here. And even if the number goes to 0.1% or even flat, it's still at such a high level year-over-year--

BRAD SMITH: Right.

JULIE HYMAN: --that it's still going to feel bad, right? And still potentially also propel the Federal Reserve to continue with what's going on.