CHRIS VERSACE: Good morning, Action Alerts Plus members. Let's start off today with this morning's Producer Price Index. Recapping our alert to you, core PPI came in as expected, showing progress in the Fed's fight against inflation. We also saw this in yesterday's August CPI print as well, particularly with the core data. However, both headline PPI and CPI for August re-accelerated compared to the data shown in recent months, largely due to higher energy prices.

Now, we've seen this impact a growing number of airlines, including Delta Airlines, which, this morning, became the latest one to cut its profit outlook. We're also seeing it at the pump. And data from AAA confirms that gas prices have continued to trend higher, not only in August, but on a year over year basis also in September. Now, while we feel that pinch, as do consumers, that move in energy prices is a positive for our shares of XLE.

Now, let's get back to the inflation data because the market is leaning on the core data, which, again, shows further progress on inflation. But when we get word from the Fed next week following its policy meeting, it's simply hard to think it will ignore the recent trend in the headline data. This has us thinking that the Fed will continue to take a more hawkish than expected tone next week, which may surprise some folks. And we also think the Fed is going to reiterate it being data-dependent with the forward path for monetary policy.

This brings us back to our comment yesterday that September and October inflation data is going to be a key factor for the market in the coming months. As we think about it, this pretty much means that the market will be once again going through a Groundhog Day-like moment with the data, again, trading data to data day to day.

Now, let's move on to retail sales. Headline August retail sales surprised to the upside. But here, too, it was largely due to the month over month increase in gasolation-- gasoline station retail sales. Sorry, folks. You try and say that twice as well. Now, gasoline station retail sales were far stronger than overall retail sales. Not surprising, given the move that we've seen in gas prices.

However, sifting through the various line items contained in the overall report, we have to say that the data was positive and very supportive for our holdings in Amazon, Costco, Chipotle, McDonald's, and PepsiCo. We have far more detailed comments and context for that in our alert to you, which should be in your inboxes. And of course, we remain vigilant as a potential strike at the major automakers looms.

While any strike is thought to have just a modest impact on the economy, the reality is, the extent will be determined by how long any such strike runs. Now, given what we are seeing with unionized labor and other areas, the UAW is looking for some tough terms that are likely to translate into margin pressures for the Detroit Three. This week, UPS is sharing the impact of its Teamsters contract. And those comments have pressured its shares considerably. We expect the same to happen with the Detroit Three eventually.

And are we glad that we sold out of the portfolio's position in UPS around $1.80 in late April and early May? We sure are. We're also glad that we closed out our position in Ford between $13.50 and $14 a share in July as well. Now, let's wait and see what the UAW brings. That's today's Rundown. JD will be back tomorrow for more on this week's trading with Sarge Guilfoyle.