Its been another quiet session for stocks with the major averages spending most of the morning trading near unchanged, though the S&P, Dow and Nasdaq have all moved mildly into negative ground near noon. Inflation remains muted in the U.S. and inflation data was in-line with expectations in China, while in Europe the Brexit can has been kicked down the road after Theresa May accepted the EU's offer to push the deadline out by six months.
ECONOMIC EVENTS: In the U.S., the Producer Prices Index grew 0.6% in March compared to the prior month, topping expectations for month-over-month growth of 0.3%. On a year-over-year basis, the headline PPI was up 2.2% in March. The core PPI, excluding food and energy, was up 0.3% month-over-month and up 2.4% year-over-year. Initial jobless claims dropped another 8,000 to 196,000 in the week ended April 6.
In China, inflation figures for March were in-line with consensus expectations, with CPI growth of 2.3% and PPI growth of 0.4%.
In Europe, the European Union and United Kingdom agreed to what was called "a flexible extension" until October 31 for the U.K. "to find the best possible solution" for its planned departure from the bloc.
TOP NEWS: Shares of Bed Bath & Beyond (BBBY) are down 8% after the company reported earnings, gave guidance and provided an update on its transformation plan after the market close last night. Legion Partners Holdings, Macellum Advisors, and Ancora Advisors, the activist investing group that have recently been agitating for change at the retailer, responded to the news by contending that the "fourth quarter earnings provided another example of why the company needs new leadership." UBS analyst Michael Lasser also questioned management's announced strategy update. He contends that the company's plans to "cut back on couponing, lower marketing spend, reduce store labor, and make returns more stringent" runs counter to "what most retailers are doing currently" as they aim to capture more customers.
Shares of Tesla (TSLA) are under pressure, dipping 3% after a report saying that the company and partner Panasonic (PCRFY) have put plans to expand their Gigafactory on hold due to concerns about weakening demand for Tesla vehicles. Following the Nikkei report, Roth Capital analyst Craig Irwin lowered his price target for Tesla shares to $240 from $270, telling investors that the direct read on Panasonic/Tesla suspending their battery plant expansion plans is that the partners probably do not see Tesla achieving projected sales volumes.
MAJOR MOVERS: Among the noteworthy gainers was Evolent (EVH), which rose 8% after the company's largest customer said it was "cautiously optimistic" that an increase in Medicaid payments implemented in Kentucky will allow it to remain in business. Also higher was Fastenal (FAST), which gained about 5% after reporting quarterly results.
Among the notable losers was Intercept (ICPT), which dropped 15% after it released "supportive data" from its Phase 3 NASH study. Also lower was WW (WTW), which fell 12% after JPMorgan analyst Christina Brathwaite lowered her estimates and price target for the stock, saying daily active user data in the U.S. has tracked "even worse than her bearish expectations."
INDEXES: Near midday, the Dow was down 44.42, or 0.17%, to 26,112.74, the Nasdaq was down 14.07, or 0.18%, to 7,950.17, and the S&P 500 was down 2.91, or 0.1%, to 2,885.30.
