Big Increase In CPI — Here Are The Sectors Affected The Most


Stocks reversed course this midday after a weak open on higher CPI data.

Consumer prices rose sharply as energy
and clothing costs soared. The CPI index rose 0.5% in March, with exports up 4% — the biggest monthly increase since 1996. Interest-rate-sensitive stocks such as
homebuilders and banks continue to be weak on continued fears of an interest
rate hike.

Bank of America
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reported earnings that grew 11% to $2.68 billion with revenue up 7% at $9.69 billion.

Dow component DuPont
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raised its profit outlook on strength in its agriculture and nutrition business.
It now expects earnings to reach 95 cents for the quarter and $2.20 for the
year.
Harley Davidson

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posted earnings of $204.6 million on revenue that rose
4.7% to $1.17 billion. The company left its 2004 motorcycle production target of
317,000 unchanged and reiterated its long-range goal of 400,000 in 2007.

Dow
+21.64

10402.89
S&P 500
+1.79
1131.57
Nasdaq +5.02
2035.53

The day’s leading sectors are
Disk Drives

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+1.84, Airlines
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+1.67%,
Chemicals

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+1.53%, and Biotechs
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+1.47%.

Weak today are Healthcare
Providers

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-1.80%, and Healthcare
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  -0.89%

Economic news releases today
included CPI rising +0.5% and the US trade deficit narrowing to $42.1 billion.

10-year Notes are 140 at
111 040

The dollar
is +0.45 at 90.63

Gold is -5.10 at 402.60

Crude oil is -0.58 at
36.10

Volume is 700,000,000 on
the NYSE, and 908,000,000 on the Nasdaq.

Market breadth is negative.

NYSE Issues
Advancing
1058 Up Vol 309
Declining 2163 Down Vol 358
Ratio 2.10 1.68
Nasdaq
Advancing
1449 Up Vol 452
Declining
1585 Down Vol 413
Ratio 1.07 1.09

Top Dow stocks are:

DuPont
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+2.72% at
44.86, Johnson & Johnson
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, +1.90% at 52.36, Merck
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+1.61% at 45.32, and Wal-Mart
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+1.20% at 57.16. 

Stocks in the news:

Take-Two Interactive
Software

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will post a quarterly loss of 15 cents a share on
revenue of $170 million. CEO Jeffrey Lapin’s resignation sent TTWO down 12%.

Georgia-Pacific
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is expecting higher earnings of 60 cents on strong performance of its building
products.

McDonalds
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posted a 11.5%
increase in sales on strong domestic revenue. US same-store sales were +9.9%,
but European sales were +2.9%.

Brice Wightman

bricew@tradingmarkets.com