Inflation At The Consumer Level Rose By 0.7 Percent

  • The market moved broadly higher at the open this morning as positive earnings reports outweighed lack lackluster economic data.
  • The Commerce Department said inflation at the consumer level rose by 0.7 percent last month, slightly higher than the 0.6 percent increase that economists were expecting. It was the biggest one-month gain since a 0.7 percent increase last July. The big jump was seen as a temporary blip, however.
  • Inflation is not expected to be a problem any time soon given a severe recession which is keeping a lid on wage pressures.
  • The Federal Reserve reported production at the nation’s factories, mines and utilities fell 0.4 percent last month as the recession crimped demand for a wide range of manufactured goods, including cars, machinery and household appliances. The decline, however, was not as bad as May.
  • Industrial activity posted a revised 1.2 percent drop then, which turned out to be slightly worse than first reported.
  • Oil prices rose to near $61 a barrel as investors looked to a weekly inventory report for clues on U.S. gasoline demand.

Stocks Covered In Today’s NewsBites…
Cisco Systems Inc (CSCO), Yum Brands Inc (YUM), J B Hunt Transport Services Inc (JBHT), Lennar Corp (LEN) and Brinker International Inc (EAT), Altera Corp (ALTR), Newmont Mining Corp Holding Co (NEM), Forest Oil Corporation (FST), ON Semiconductor (ONNN), AngloGold Ashanti Ltd (AU), Owens Illinois Inc (OI), Toll Brothers (TOL), Sealed Air (SEE), Werner Enterprises Inc (WERN) and Mitsubishi UFJ Financial Group Inc (MTU).

Today’s News Leaders…
Intel Corporation (INTC), Abbott Laboratories (ABT), Campbell Soup Co (CPB), Rio Tinto PLC (RTP) and Alcon Inc (ACL) top the lists of companies with news today.

Analyst Favorites…
CSX Corporation (CSX), Netflix Inc (NFLX), Aeropostale Inc (ARO), Celanese Corp (CE) and Collective Brands Inc (PSS).

Select ETFs and HOLDRs…
iShares MSCI Brazil Index Fund (EWZ), Oil Service HOLDRS Trust (OIH), iShares DJ US Basic Materials Sector Index Fund (IYM), Market Vectors Steel Index Fund (SLX) and Vanguard Energy ETF (VDE).

Tip of the day…
Listen to the experts. Listen but don’t blindly follow. Use what they say as the beginning of your research. No matter how great a trade looks, if it does not fit into your goals and tolerances then it’s not for you.