Workhorse Group Inc WKHS shares are trading higher by 8.61% to $1.01 Wednesday, despite a lack of company-specific news. The stock is rising after the Producer Price Index (PPI) for final demand slumped 0.3% month-on-month in May, down from the previous 0.2% monthly increase and below the expected 0.1% fall.
The PPI print follows the May consumer price index (CPI) reading, which came in lower than expected, supporting market belief that the Fed is nearing the end of its interest rate hike cycle.
A softer PPI report suggests that the prices of raw materials and inputs used in manufacturing, such as metals, plastics, and components, may not be increasing at a rapid pace. This can help Workhorse manage its production costs and potentially improve its profit margins.
As electric vehicles rely on various raw materials, lower input costs can contribute to the company's cost efficiency and competitiveness.
See Also: 'No More Fed Hikes!' Economist Declares End Of Inflation Frenzy
According to data from Benzinga Pro, WKHS has a 52-week high of $4.73 and a 52-week low of $0.80.
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