"S&P 500 margin forecasts appear vulnerable to a widening gap between producer and consumer price inflation:" @GinaMartinAdams While CPI has been rising, "PPI is rising at double the pace and the largest negative spread between the two indicators since 1974." 
It makes sense that this gap is a better predictor of margin pressures than the CPI or PPI alone. Theoretically, it begins to approximate how much of the higher input costs companies can pass along to consumers on a rough, average basis.
The reaction to today's inflation data is odd, at least at first glance. Bond yields are now sharply lower while stocks selloff, led by financials and, oddly, energy despite higher crude prices. Perhaps potential margin pressures is key among traders' concerns, more than the Fed.
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