Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (53634)	6/10/2000 10:14:00 PM
From: Les H	Read Replies (1) \| Respond to of 99985

Flat US Producer Prices in May May producer prices showed less upward pressure than was expected remaining unchanged in the month. The main downward surprise was a 0.5% decline in energy prices. Steady overall prices was also helped by the food component declining 0.2% in the month. The weakness in food and energy prices helped offset a stronger-than-expected rise in core producer prices of 0.2%. Market expectations had been for an increase of 0.1%. The main upside surprise was a 0.9% gain in passenger cars. Over-the-counter drugs also applied some modest upward pressure rising 0.4%. On a year-over-year basis core producer prices are up 1.5%. This compares to a 0.8% rate that prevailed at the start of the year. Today?s PPI report suggested minimal price pressure among less processed goods. Core intermediate prices were up only 0.1% in the month while core crude goods were down 0.3% following an even greater 1.2% decline in April. The Fed will likely take some comfort from flat producer prices and limited price pressure among less-processed goods. However, this will likely be tempered by indications that the annual rate of change in core prices is on an upward trend. As well, with recent comments by Fed officials indicating a desire to see more evidence of a slowing in growth, a fed funds hike at the next FOMC meeting June 27-28 still appears likely. There was limited financial market reaction to today?s report. Bank of Montreal