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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 3:59 PM EST

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To: Joe NYC who wrote (127653)2/17/2001 7:08:50 AM
From: Road Walker  Read Replies (1) of 186894
 
Joe,

re: "I like that. Take every high number that goes into the average, and you end up with lower number. How about playing the game the other way. Take out the components with the lowest increase and see what you get."

Fine with me.

Tobacco prices can fluctuate 25% month to month, depending on the promotional programs of the cigarette makers. They are weighted fairly heavy in the average (so I've heard). And they don't reflect underlying costs, they reflect the whims of the marketing department at RJR.

Autos are more serious, and I think do correspond to the demand / supply situation. I'm not sure if rebate/financing promotions are included in the formula.

But there is a decent argument that if just a few items spike the number, the number isn't representative of the economy in general.

The rise in PPI has been dismissed by most economists as a single month aberration. We'll see next month, I don't have a good guess on either side of the argument.

John
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