PPI Blowout–Here’s The Trader Talk
Stocks are lower Tuesday on
inflation concerns.
October PPI rose +1.7%, well above expectations of +0.5% and the largest gain since January 1990;
ex food/energy, +0.3%. Trader talk: Can producers raise prices and pass on
higher costs to consumers?
Wal-Mart
(
WMT |
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PowerRating) was in-line and raised the forecast for the full year;
sales, however, were less than expected. Retail stocks are generally lower.
Traders are wondering if all the gains are priced in these stocks? The market is
forward-looking, and last Spring’s numbers were phenomenal, which makes for
makes for tough comparisons year/year.
Citigroup
(
C |
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PowerRating) and financial stocks in
general are lower on higher interest rate concerns.
Google
(
GOOG |
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PowerRating) is down 5% as 39.1 million shares become unlocked and available for
sale today.
Pfizer is pulling the Pfizer “wild thing” ads. Merck
(
MRK |
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PowerRating)
is trading up 2% after recent losses.
On this day in 1914 the Federal Reserve opened.
| Dow | -51.14 | 10499.10 |
| S&P 500 | -6.77 | 1177.04 |
| Nasdaq | -15.59 | 2078.50 |
Strong sectors are: Gold
(
XAU.X |
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PowerRating) +1.51%, Oil Services
(
OSX.X |
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PowerRating) +0.94%.
Weak sectors are:
Airlines
(
XAL.X |
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PowerRating) -1.82%, Internet Â
(
GIN.X |
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PowerRating) -1.81%,
Retail
(
RLX.X |
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PowerRating) -1.35%.
The dollar is -0.26 at
83.74
Gold is +3.60 at 440
Crude Oil is -0.15 at 46.80
926 million on the Nasdaq.
Market breadth is negative.
| NYSE | Issues | |
| Advancing | 1218 | Up Vol 171 |
| Declining | 1965 | Down Vol 389 |
| Ratio | 1.61 | 2.27 |
| Nasdaq |
||
| Advancing | 1004 | Up Vol 344 |
| Declining | 1910 | Down Vol 527 |
| Ratio | 1.90 | 1.53 |
Stocks in the News
Home Depot
(
HD |
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PowerRating) beat and raised guidance. Q3 profits rose 15%.
JC Penney
(
JCP |
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PowerRating) beat by a penny. The company reported 0.50 vs.Â
0.27 a year ago.
Staples
(
SPLS |
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PowerRating) beat by a penny; profits rose 25%.
BJ’s Wholesale
(
BJ |
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PowerRating) beat by 0.02.
Electronic Data
(
EDS |
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PowerRating) reported a larger loss, but beat expectations
Fannie Mae
(
FNM |
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News |
PowerRating) warned of a possible $9 billion loss.
Tobacco stocks (MO, RJR, CG, BTI) will be in focus as Britain considers a
smoking ban in most enclosed areas.
Brice Wightman