Producer Prices Climbed More Than Expected in February; Big Profits and High Prices: There Is a Connection By Hardika Singh

Producer prices index data showed that prices ticked up from the prior month. Meanwhile, federal regulators allege that JPMorgan didn't properly oversee and monitor trades that the bank and clients carried out through its systems. Read on for this news and more.

Top News Producer Prices Climbed More Than Expected in February

Producer prices rose 0.6% in February from the prior month, topping the 0.3% increase economists expected. The producer-price index shows the hottest inflation for goods since August 2023 drove much of the increase, largely fueled by rising gas prices.The Federal Reserve tends to ignore volatile gas prices when gauging inflation.

U.S. Economy Big Profits and High Prices: There Is a Connection

Sometimes President Biden sounds as though he is running for re-election against John D. Rockefeller, not Donald Trump. In his State of the Union address last week, Biden slammed "big pharma," "big landlords" and the "biggest corporations" that "pad their profits" with "shrinkflation," "price gouging," "deceptive pricing," "exorbitant prices" and "price-fixing." Yet cut through the hyperbole, and there is a factual core to Biden's accusations in need of investigation.

Financial Regulation Roundup JPMorgan Hit With Nearly $350 Million Fine for Compliance Failures in Trading

Federal regulators fined JPMorgan Chase roughly $350 million on Thursday for failing to properly monitor billions of trades that the bank has executed since 2019.

Forward Guidance Friday (all times ET)

5:30 a.m.: Bank of England/Ipsos inflation attitudes survey

8:30 a.m.: New York Fed's Empire State Manufacturing Survey

10 a.m.: University of Michigan consumer survey

Monday

6 a.m.: European Union harmonized consumer-price index

10 a.m.: Home builder confidence index

Research U.S. Labor Market May Not Be as Tight as Data Would Suggest

U.S. labor strength "is increasingly concentrated in the big states that saw Covid-related inbound population growth," Piper Sandler economists say in a note, citing Texas and Florida. The states people fled, including California, Illinois and New York, "now face weaker economies, " they say. Piper Sandler sees signs of recession in some states. "Robust headline payrolls, and sub-4% national unemployment, appear to exaggerate the health of the labor market," the economists say. They add that, while companies aren't laying off aggressively, "the pace at which laid-off workers are being rehired is very slow." - Paulo Trevisani

Executive Insights

Here is our weekly roundup of stories from across WSJ Pro that we think you'll find useful. They are unlocked for WSJ subscribers.

A bipartisan duo of China hawks drew attention when they introduced legislation taking aim at TikTok, but the social-media site isn't their only target . 78%: The percentage of increase in bankruptcies filed by small businesses in February. Layoffs and exits outstripped new hires in 2023 at startups for the first time in years, according to one count. Listen to WSJ Pro's James Rundle unpack how medical providers have been reeling after Change Healthcare, a company used for insurance billing and payments, got hacked. Basis Points With rates this high, buyers are running through the full playbook of ways to shave a bit off the cost of borrowing money. These include paying the lender more upfront or choosing an adjustable-rate loan. But these popular strategies are no longer doing buyers much good. - Ben Eisen Shell plans to loosen its target for carbon-emission cuts from its operations , following the footsteps of rival BP, as Chief Executive Officer Wael Sawan focuses on last year's pledge to prioritize value. - Christian Moess Laursen Feedback Loop

This newsletter is compiled by Hardika Singh in New York.

Send us your tips, suggestions and feedback. Write to:

[hardika.singh@wsj.com]

This article is a text version of a Wall Street Journal newsletter published earlier today.


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03-15-24 0716ET