CPI – Here’s Where You’re Paying More

Stocks rallied on a
mix of economic news. 
Consumer prices rose
last month with CPI up 0.6% for the month of May; when excluding food and energy
costs, CPI was up 0.2%. These key figures paved the way for a minimum 25
basis-point hike when the Fed meets later this month. Energy costs rose 4.6% with
gasoline prices up a whopping 8.1%. The Michigan Sentiment ticked up to 95.2,
much higher than the forecasted 90.8.


Three Dow stocks made fresh
52-week new highs today, these include Proctor & Gamble
(
PG |
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PowerRating)
,
Boeing
(
BA |
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, and Exxon Mobil
(
XOM |
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. Lucent
(
LU |
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was higher after nabbing three new deals to supply telecommunications equipment
in Asia.


After the bell,
Oracle
(
ORCL |
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is expected to report earnings of 18 cents a share;
Robert W Baird initiated coverage Oracle with a Neutral rating.















Dow size=2>+73.36size=2>10408.50
S&P 500
+9.59size=2>1134.57
Nasdaq size=2>+27.67size=2>1997.66

Strong today are Hardware
(
HWI.X |
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PowerRating)
+2.33%,
Oil Services

(
OSX.X |
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PowerRating)
+2.07%,
Amex Gold Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating)
+2.03%,  
Internet
(
ECM.X |
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Chart |
News |
PowerRating)
+1.95%.


Economic news today:
CPI that was up 0.6%, Core CPI up 0.2%, Business Inventories up 0.5%. NY Empire
state index missed expectations at 30.2 and Michigan sentiment rose to
95.2.


10-year Notes are +105 at 108
120


The dosize=2>llar is -0.42 at 89.86


Gold is +3.70 at
387.90


Crude Oil is -0.34 at
37.25


Volume is 569,000 million on
the NYSE, and 669,000 million on the Nasdaq.


Market breadth is
negative.



































NYSE Issues
Advancing 2599Up Vol
437
Declining542Down Vol
59
Ratio 4.807.41
face=Arial>Nasdaq
Advancing 2081Up Vol
489
Declining 2824Down Vol
107
Ratio 1.35size=2>4.57

Top Dow stocks are:


Merck
(
MRK |
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PowerRating)
+0.34%,
Microsoft

(
MSFT |
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, +2.23%, Honeywell
(
HON |
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PowerRating)
, +2.04%, Intel

(
INTC |
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News |
PowerRating)
, +1.82%.


Stocks in the
news:


Charles Schwab
(
SCH |
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PowerRating)
said they
would missing earnings forecasts and will cut jobs to reduce annual costs by
$150 million. Its daily average revenue trades fell 18% to 135,100 in
May.


Affymetrix
(
AFFX |
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News |
PowerRating)
rose after lifting 2004 earnings
guidance by 10 cents a share with EPS of 50 cents.


Corning
(
GLW |
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Chart |
News |
PowerRating)
reaffirmed previous earnings forecasts
and said volume growth will exceed 50% for the year with continued high demand for
LCD screens.


The USPS agreed to lease General Motor’s
(
GM |
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Chart |
News |
PowerRating)
minivan
powered by fuel cell to deliver mail in the DC area for two
years.


Brice Wightman


bricew@tradingmarkets.com