Happy Thursday Zingernation! When it rains it pours, and yesterday was a storm. All major indices closed in the red with small caps and growth stocks lagging on the day as hotter-than-expected inflation brought us lower.

But, Mr. Market looked to be reaching for an umbrella this morning. A slightly cooler-than-expected PPI number brought some of the stocks that got beaten down yesterday higher this morning. Even solar stocks went up, and on a rainy day nonetheless!

Plus, want real-time market context and insights delivered straight to your mailbox? Check out today’s partner, CBOE.

And, crypto is so back. Billions of dollars are flowing into the new Bitcoin ETFs, driving prices to near all-time highs. Join thousands of engaged readers of Future Finance - our FREE digital assets newsletter.

MARKET SNAPSHOT

Yesterday: CPI came in hot and stocks were not. But, buy the dip appeared to work again, with markets moving higher after the open with the QQQs and SPY trading up more than .5% intraday.

On Our Radar: March’s PPI came in slightly cooler-than-expected this morning, helping lift interest-rate sensitive stocks higher. Then, tomorrow, we will begin our Q1 earnings season with bank stocks like JPM reporting.

TOP STORY

Producer Inflation Shows Mixed Signals In March, Keeps Risks Of High-For-Longer Interest Rates Alive

Basically: Inflation affecting American producers shows mixed readings in March, with the headline figure falling short of estimates Thursday while the underlying gauge exceeded them, maintaining market uncertainties about potential delays in interest rate cuts.

So: The Producer Price Index (PPI) experienced a year-on-year increase of 2.1% last month, reaching its highest level in nearly a year.

The Context: This followed the release of unexpectedly robust consumer inflation data on Wednesday, sending significant shockwaves across markets.

The Numbers: The headline PPI surged by 2.1% in March 2024 compared to the previous year, surpassing the previous annual rate of 1.6% and missing expectations of 2.2%.

Cooling Off? The month-on-month increase in the headline PPI was 0.2% in March, marking a deceleration from the previous 0.6% surge and missing estimates of 0.3%.

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FIVE ZINGERS

Mailbox Money: Dividends are a great way to earn money while doing nothing. Here’s how much $JPM you need to make $500 a month.

Still Buyin’: The hype hasn’t died surrounding Bitcoin ETFs. Here are the ones reaching record inflows, and the ones with slowing activity.

Protect The Users: Meta Platforms and other social media companies are under fire to do a better job of protecting young users. Here are the steps the company is taking.

Bottoms Up: Constellation Brands, the company that owns beer labels like Modelo and Corona, reported strong earnings this morning. Here’s how the stock is trading.

Brace Yourself: Bond traders are bracing themselves for the scenario that the Fed is unable to cut rates at all this year. Check out the details here.

ONE FOR THE ROAD

Has Tesla Stock Bottomed Out? Fund Manager Says Much Of Bad Fundamentals News 'May Already Be Discounted'

In Short: Despite Wednesday’s inflation data-induced pullback, Tesla, Inc. shares are showing signs of recovery from the sell-off triggered by rumors of shelving the Model 2 car, with much of the negative fundamentals already factored into the stock, according to Future Fund Managing Partner Gary Black.

What Happened: Black described Tesla’s current state as a “tug-of-war between declining fundamentals” and “excitement about FSD 12.3.x and robotaxi timing,” in a post on X.

The Numbers: He highlighted that the fiscal year 2024 earnings per share estimates have declined by 26% this year, from $3.38 to $2.84, and that for 2025 have fallen by 29% from $5.34 to $3.80.

So: Black emphasized the significance of CEO Elon Musk‘s statements regarding the timing of the $25,000 low-end car launch during the first-quarter earnings call on April 23.

Quoted: “Ideally, Elon should say TSLA continues to focus on both the $25K compact and robotaxi as a single platform (the latter without pedals and steering wheel) without providing explicit timing,” he suggested, to avoid triggering the Osborne Effect.

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