Inflation Jumps, Stocks Approach Low, Hewlett-Packard Disappoints

Stocks approached their November lows triggered by a disappointing profit forecast from Hewlett-Packard and a dramatic jump in wholesale inflation. The fear index VIX actually retreated providing a positive signal of stock stabilization despite the continued waves of dire news. The DJIA dropped -89.68 to 7465.95, just 16 points above the lows. The Nasdaq gave back -25.15 to 1442.82 and the broad based S&P 500 dipped -9.48 to 778.94.

CVS Caremark
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– Climbed 6.37% or $1.72 to $28.71/share after turning in 4th quarter earnings beating analysts estimates by 1 cent.

GameStop
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– Forecast earnings beating analysts projections triggering a rise of 7.08% or $1.76 to $26.63/share.

Priceline.com PCLN|PCLN] – Traveled up 16.61% or $11.42 to $80.16/share after stating it would beat analysts estimates for first quarter profit potentially by 19%.

Reliance Steel
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– Soared 19.89% or $4.17 to $25.14/share after crushing analysts 4th quarter earning estimates.

Oil climbed $4.86 to $38.92, Gold slipped back $1.70 to $976.50 and the fear index VIX fell 2.85% to 47.08 despite the selling today.

Market Snapshot

Dow

-89.68 7465.95

NASDAQ

-25.15 1442.82

S&P 500

-9.48 778.94

Economic
News

Empire State Mfg. (Feb): Consensus: -23.75, Prior: -22.2

Net Long-Term TIC Flows (Dec): Consensus: $20.0B, Prior: -$21.7B

Housing Starts (Jan): Consensus: 530K, Prior: 550K

Building Permits (Jan): Consensus: 525K, Prior: 547K

Export Prices ex-ag. (Jan): Consensus: NA, Prior: NA

Import Prices ex-oil (Jan): Consensus: NA, Prior: NA

Capacity Utilization (Jan): Consensus: 72.5%, Prior: 73.6%

Industrial Production (Jan): Consensus: -1.4%, Prior: -2.0%

FOMC Minutes (Jan. 28): Consensus: NA, Prior: NA

Core PPI (Jan): Consensus: 0.1%, Prior: 0.2%

PPI (Jan): Consensus: 0.2%, Prior: -1.9%

Initial Claims (Feb. 14): Consensus: 615K, Prior: 623K

Leading Indicators (Jan): Consensus: 0.0%, Prior: 0.3%

Philadelphia Fed (Feb): Consensus: -25.0, Prior: -24.3

Crude Inventories (Feb. 13): Consensus: NA, Prior: 4.72M

Core CPI (Jan): Consensus: 0.1%, Prior: 0.0%

CPI (Jan): Consensus: 0.3%, Prior: -0.7%