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Technology Stocks : Semi Equipment Analysis
SOXX 351.08+2.3%Jan 27 4:00 PM EST

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To: Gottfried who wrote (14396)4/11/2004 2:06:19 AM
From: Donald Wennerstrom  Read Replies (1) of 95776
 
How about the spectre of inflation?

cbs.marketwatch.com

<<Whither inflation?

Price outlook takes center stage after strong job report

By Gregory Robb, CBS Marketwatch.com
Last Update: 10:00 AM ET April 9, 2004

WASHINGTON (CBS.MW) -- Imagine coming across an apartment building where half of the residents are shouting fire and throwing their possessions from their windows and the other half are calmly sitting on the front stoop, chatting, and drinking cans of beer wrapped in paper bags.

Such a dichotomous view is what emerges when you talk to Wall Street economists about inflation.

Many economists are certain that higher inflation is a foregone conclusion, while others dismiss the concern.

Who is right? The dispute has important ramifications because those who see inflation building generally believe the Federal Open Market Committee will raise short-term interest rates by August, while the benign-inflation advocates see no rate hike until after the presidential election.

Both sides will be watching closely next Wednesday when the Labor Department releases the March consumer price index at 8:30 a.m. Eastern.

The consensus forecast of Wall Street economists is for the consumer price index to rise 0.3 percent in March, with most of the increase coming from energy prices.

But of more importance to the market is the core rate, which excludes volatile food and energy prices. The core is expected to rise a modest 0.2 percent in March.

The core CPI rate has increased 0.2 percent in February and January, the first time that the core rate has increased at this level since September 2002. The core rate is running at a 2.2 percent rate for the first two months of the year.>>

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