November PPI 0.2% vs. 0.3% estimate

Summary

CNBC's Rick Santelli reviews November PPI, retail sales, and current account data on Squawk Box. PPI headline matched estimates but year-over-year core and ex-trade measures were hotter than expected, while retail sales were strong. The 10-year Treasury yield showed little immediate reaction near 4.16%, but Santelli expects the warmer data to eventually push it to test 4.20%. Joe Kernen and Santelli agree the data make additional Fed rate cuts this year unlikely.

• November PPI rose 0.2% m/m, in line with estimates.
• Year-over-year PPI final demand and core were 3.0%, hotter than expected.
• PPI ex-food/energy/trade rose 3.5%, the highest since March/February.
• November retail sales rose 0.6% headline, with core measures also strong.
• The current account deficit was $249 billion, below the record but still large.
• The 10-year Treasury yield hovered near 4.16% after the data.
• Santelli expects the 10-year yield to test 4.20%, a level not closed above in over four and a half months.
• Joe Kernen and Rick Santelli said the data make more Fed rate cuts this year unlikely.