Producer price index, Aurora Cannabis earnings — What to know in markets Wednesday

Heidi Chung
Reporter

The Producer Price Index reading for August will be in focus Wednesday. PPI data is often looked to as a gauge of U.S. producer prices. Core producer prices are expected to have risen 0.2% from July and 2.2% from last year, according to economists surveyed by Bloomberg.

“The PPI index shows few signs of domestic producers taking advantage of any additional pricing power due to tariffs,” Wells Fargo wrote in a note Friday. “PPI inflation has eased over the past year, with the headline index slowing to a 1.7% rate. Underscoring that softness, our preferred measure of core PPI inflation, which excludes food, energy and trade services (measured as margins), fell for the first time last month in nearly four years.”

Meanwhile pot company Aurora Cannabis (ACB) is the only major name scheduled to report quarterly results after the market close Wednesday. Aurora is expected to report an adjusted earnings loss of 5 cents per share on $107.92 million in revenue, according to analysts polled by Bloomberg.

Analysts are expecting Aurora’s fiscal fourth quarter revenue to have surged fourfold from the same period last year. Kilograms produced in the fourth quarter are also expected to have ballooned to 25,000, up from 2,212 last year. In addition, kilograms sold is anticipated to have jumped to over 15,000, up from 1,617 in 2018.

So far this year, Aurora is the best-performing pot stock. Shares have risen 26%, while rival Cronos (CRON) jumped 13%, Canopy Growth (CGC) is up 2% and Tilray (TLRY) tumbled 55% in the same time period.

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Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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