With no major newsflow out of Europe, and no notable economic news in the US (except for PPI), we assign a probability of 99.9% to another no-volume melt up (absent news flow, because any news is bad news) as HFTs bid up every offer while collecting rebates, afterwards getting petted behind the ears for doing Brian Sack's work.
8:30: Producer Price Index (July): Moderate gains. We forecast that the July Producer Price Index (PPI) rose by 0.1% (mom) after declining by 0.4% in June. Commodity prices edged up in July, according to the Goldman Sachs Commodity Index (GSCI), with gains in energy and metals offsetting a further decline in agricultural prices. We forecast that the core PPI rose by 0.2% (mom), down slightly from a 0.3% gain in June. Vehicle prices have been lifting both the PPI and the Consumer Price Index (CPI) in recent months, and will be an important component to watch in this morning’s report.
PPI: GS: +0.1%; Consensus: +0.1%; Last -0.4%.
Core PPI: GS: +0.2%; Consensus: +0.2%; Last +0.3%.
11:30: Treasury will auction a $20.0 billion 12-day CMB to raise all new cash, or the surge in Bill issuance is here
13:20: Dallas Fed President Richard Fisher on Fed functions and monetary policy.