The stock market opened distinctly higher after the surprise decline in July PPI. Disney's (DIS 119.11, +6.67, +5.9%) better-than-expected earnings and Disney+ subscriber growth is also in play today as a support factor for the broader market. The market, however, has fallen off earlier highs that took the S&P 500 to 4,257. The indices are sitting near their lowest levels of the day but still occupy a position in positive territory. July total PPI showed a decline of 0.5% month-over-month and a 9.8% increase year-over-year. Core PPI, which excludes food and energy, was up 0.2% month-over-month and 7.6% year-over-year. That is still unacceptably high, yet the point registering for Wall Street is that total PPI was down noticeably from 11.3% in June while core PPI was down from 8.2%.Mega caps and growth stocks are the main downside drivers limiting index performance, but there is more strength in the market than surface level performance suggests. The Vanguard Mega Cap Growth ETF (MGK) is up 0.1% versus a 1.0% gain in the Invesco S&P 500 Equal Weight ETF (RSP) and a 0.5% gain in the S&P 500. Also, the Russell 3000 Growth Index (+0.2%) trails the Russell 3000 Value Index (+0.9%).As for the S&P 500 sectors, health care (-0.1%) and consumer discretionary (-0.1%) are the only two in negative territory. Energy (+3.2%) sits at the top of the leaderboard, boosted by rising oil prices. WTI crude oil futures are up 2.6% to $94.41/bbl.Semiconductors are a bright spot in the market after selling off heavily recently. The PHLX Semiconductor Index is up 0.7% with most components trading in positive territory. The 2s10s spread is narrower today with the 2-yr note yield down one basis point to 3.17% and the 10-yr note yield up five basis points to 2.84%. Notably, the 10-yr note yield has sprung higher after hitting 2.73% shortly after the release of the PPI report.Reviewing today's economic data:July PPI fell 0.5% (Briefing.com consensus +0.3%) from a revised 1.0% increase (from 1.1%) in June. Core PPI, which excludes food and energy, rose 0.2% (Briefing.com consensus 0.4%) after the 0.4% increase in June. The key takeaway from the report is the moderation seen in the year-over-year inflation readings. That follows on the heels of the pleasing CPI data and it fits neatly within the supportive peak inflation narrative that has been a boon for investor sentiment.Weekly initial jobless claims totaled 262,000 (Briefing.com consensus 263,000) after the prior week's revised total of 248,000 (from 260,000). Continuing claims totaled 1.428 million after the prior week's revised total of 1.420 million (from 1.416 million).The key takeaway from the report is that the level of initial claims denotes some softening in the labor market, but that softening is still more consistent with a soft landing scenario for the economy.Weekly EIA Natural Gas Inventories showed a build of 44 bcf versus a build of 41 bcf last week.