LIVE MARKETS-Wall Street mixed after hot PPI report

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WALL STREET MIXED AFTER HOT PPI REPORT

Shares on Wall Street are mixed overall on Thursday, trading in narrow ranges, after hotter-than-expected producer price data, which all but removed the chances of a supersized 50 basis-point rate cut by the Federal Reserve at next month's policy meeting.

Earlier in the day, U.S. futures seemed on track for new all-time peaks – and they still might make it – with European markets also pushing higher in the first half of Thursday's session.

But things turned a little bit south after data showed U.S. producer prices spiked 0.9% in July from June amid a surge in the cost of goods, but also of services like machinery and equipment wholesaling. Economists polled by Reuters had forecast the PPI rising 0.2%. In the 12 months through July, the PPI increased 3.3% after advancing 2.4% in June.

Post-PPI, U.S. Fed funds futures now see a 98% chance of a 25-bp cut in September, took out the 3% odds for a 50-bp rate decline, but added a 2% probability that the odds for Fed holding rates steady.

"The jump in PPI is eye-catching, but the details are where the action is. The headline PPI increase was mostly due to margin expansion for wholesalers and retailers," writes Brian Jacobsen, chief economist, at Annex Wealth Management, in emailed comments.

"There's nothing mechanical about the effects of tariffs on consumer prices. The effects show up in all sorts of different places."

With PPI out of the way, investors are looking ahead to the release of retail sales and the University of Michigan surveys on Friday.

Fawad Razaqzada, market analyst, at City Index and FOREX.com, says dip buying remains the strategy of choice against a backdrop of strong momentum and rising expectations of multiple Fed rate cuts over the next several months.

He adds that the PPI jump could be a one-off thing, but certainly needs to be monitored closely in the coming months.

Here is an early snapshot of financial markets:

(Gertrude Chavez-Dreyfuss)

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EARLIER ON LIVE MARKETS:

US STOCK FUTURES PRESSURED BY HOTTER-THAN-EXPECTED PPI CLICK HERE

WHEN GOOD NEWS ISN'T GREAT NEWS FOR LONDON STOCKS CLICK HERE

EARNINGS GROWTH AND FED CUTS - AN UNUSUAL MIX CLICK HERE

UKRAINE PEACE COULD BE A DOUBLE-EDGED SWORD FOR THE EURO CLICK HERE

STOXX UP, VOLATILITY DOWN CLICK HERE

EUROPE BEFORE THE BELL, CATCHING BREATH CLICK HERE

MORNING BID: BITCOIN JOINS THE RISK-ON PARTY CLICK HERE