Welcome to the Dividend Cafe weekly market commentary focused on dividends in your portfolio and dividends in your understanding of economic life.

Welcome to Dividend Cafe. It is Tuesday, May the 14th. And we ended up having a positive day in markets and actually closed just about right at the highs for the day.

The Dow was up 126 points.

NASDAQ was the biggest winner as far as an indy goes was up 0.75%.

So good day in markets and stocks.

And actually bonds had a little bit of a bid as well.

The rates dropped on the 10-year.

We closed at 445, which was down about three basis points on the day.

Biggest headline news was the producer price index, PPI, came out for the month of April, a fair amount higher than expected.

We got a 0.5 number on headline and N.Core, actually, both.

And 0.2 was expected for both.

So a bit hotter for the month of April.

But March was revised lower to a negative number.

So March was revised to negative 0.1% both on headline and core.

So if you annualize, not trailing 12 month, but if you annualize where we're at now in PPI,

you've got a headline here at 2.37% year over year and core at 2.17% year over year, again,

annualized. So right around the target, frankly, with the latest numbers. Markets sort of took

it as a mixed bag on the day. I would say generally positive, which is why markets closed up

and bonds rallied a little bit. I will say generally positive, which is why markets closed up and bonds rallied a

little bit. I will say that the odds for a September rate cut did move slightly lower on the day

following this. We're still at a 60% chance for that in September. Tomorrow we have the CPI number,

which is going to be a much more focused on number.

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