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The market is lower in early trading after this morning's PPI inflation report showed a troublesome jump in inflation.
Total PPI rose +1.2% in July (vs. +0.6% consensus), while core PPI (ex- food and energy) rose +0.7% (vs. +0.2%). This leaves year/year PPI up +9.8% and core PPI up +3.5% - the highest level since 1991.

Investors don't like to see big jumps in inflation, but I still think that inflation is a lagging indicator, and as such it is like to moderate in the near future as energy prices have come down and global economies are slowing around the world. The 10-year yield is only up slightly, to 3.82%.
A few more retailers reported earnings this morning, including Target (TGT), Home Depot (HD), and Saks (SKS). The first two topped analyst estimates, but all 3 stocks are lower nonetheless. The retail index is down -2.07% so far.
Financials remain the weakest group so far, with the bank index -2.77%. Energy stocks are the only ones bucking the weakness so far. Natural gas is trading higher, while oil is lower. Housing stocks are also lower after housing starts fell -11.0% and building permits were down -17.6%.
Asian markets were lower overnight, and the dollar is slighly weaker this morning. The VIX is up another +4.85% today, bouncing above 22. The put/call ratio is high at 1.11.