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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Hobie1Kenobe who wrote (57463)	1/12/2001 8:41:12 AM
From: Jeff Jordan	Respond to of 436258

it appears inflation is in energy .....something will be done about that.

To: Hobie1Kenobe who wrote (57463)	1/12/2001 8:55:28 AM
From: UnBelievable	Respond to of 436258

Core Producer Prices, Retail Sales Post Stronger-Than-Expected Performances 01/12/2001 Dow Jones On Line (Copyright © 2001 Dow Jones & Company, Inc.) Dow Jones Newswires WASHINGTON -- U.S. wholesale prices held steady in December, but grew at their fastest pace in a decade last year. Separately, American consumers spent enough money to push overall U.S. retail sales unexpectedly higher in December despite lackluster holiday sales. The producer price index for finished goods was unchanged in December after rising 0.1% in November, the Labor Department reported Friday. But excluding volatile food and energy items, the so-called core index rose a surprising 0.3%, the biggest gain since May. In annual terms, the overall index rose 3.6% in 2000, the biggest increase since 1990. Economists surveyed by Thomson Global Markets had expected producer prices to advance 0.3% and to be up 0.1% excluding food and energy. The government's report on wholesale prices provided some evidence of inflationary pressures in the production pipeline. Prices of crude, or unprocessed goods, rose 8.7% after falling 2% in November, marking the biggest increase in more than 10 years, although the gain was mostly the result of a 35.3% increase in crude natural-gas prices. Prices of intermediate goods rose 0.2% after falling by the same amount in November. The Labor Department attributed the steady prices in finished goods overall to declining food and energy prices. Energy prices fell for the first time since August, dropping 0.7%. That included an 8.4% drop in gasoline prices, and a 1.2% decline in heating-oil prices. But prices of residential natural gas posted a record increase of 6.9% and prices of residential electricity rose 1.2%, the fastest pace since November 1994. The government said wholesale food prices declined in December, posting a 0.4% decrease after a 0.2% increase in November. Automobile prices rose, climbing 0.5% after a 0.1% increase in November. Wholesale computer prices declined at a faster pace, falling 2% in after a 0.3% decline in November. But prices of prescription drugs rebounded, growing at a 0.6% rate after a 1.6% decline in November. In a separate report, retail sales rose 0.1% for the month, following a revised 0.5% drop in November, the Commerce Department said Friday. The November performance had originally been reported as a 0.4% decline. Sales, excluding autos, were unchanged in December. The sales numbers were stronger than expected. Economists in a Thomson Global Markets survey anticipated an overall drop of 0.5% and a rise of 0.1% excluding autos. Auto sales rose a surprising 0.3% for the month. Analysts were expecting a drop in light of the 8% decline reported by U.S. car manufacturers in December. Although December sales were stronger than expected, the downward revisions to retail sales in November and October suggest weak consumer spending in the fourth quarter. October sales were revised to a fall of 0.1% after previously being reported as unchanged. Despite the increase in overall retail sales, the report showed that consumers restrained their holiday spending. Purchases of nondurable goods were unchanged for the month. Within that category, sales general merchandise stores fell by 0.8% after declining by 0.3% in November. Sales at home furnishing stores fell by 0.3% in December, the second monthly decline. Sales at apparel and accessory stores, however, rose by 0.9% for the month, reversing the 0.9% drop in November. Sales at gasoline service stations fell by 2.3% in December, likely reflecting lower oil prices. Retail sales, excluding gas, rose by 0.2% for the month. Purchases of durable goods, items meant to last three or more years, were up 0.1% for the month. December sales were up 3.4% from December 1999 levels. Copyright (c) 2001 Dow Jones & Company, Inc.

To: Hobie1Kenobe who wrote (57463)	1/12/2001 8:58:46 AM
From: UnBelievable	Respond to of 436258

US DEBT FUTURES ALERT: 50-bp rate cut odds continue to slip Futures World News - January 12, 2001 08:46 0745: The short end fell hard and fast after the rate implications suggested by a stronger-than-expected retail sales report and a surprisingly firm core PPI, which came in at +0.3% vs. the forecast for +0.1%. In just a few days time, federal fund futures have gone from a 100% probability for a 50-basis-point rate cut at the January FOMC to about 76%. Sep euros were down 9.5 ticks, with Mar down 7.5 as the market continues to ratchet down rate cut expectations that were perhaps built too high, too fast by the market. Mar fed funds were down 8 ticks. for a fed funds calculator click on news.bridge.com 0735: Treasury futures extended the opening slide after the retail sales report came in stronger than expected, quashing any rumors that the Fed would produce another rate cut before the Jan. 30-31 FOMC meeting. Bond traders said the figure should set the tone for a weak session throughout the day. Goldman Sachs sold 2,000 Mar 10-year notes, while Merrill Lynch sold 2,000 Mar bonds. 0655: Treasury futures in Chicago Board of Trade-Eurex a/c/e electronic trading action were lower in overnight action, with Mar bonds down 6/32 at 103 17/32 and Mar 10-year notes down 2/32 at 105 1/32. Friday is the first time this week the market can expect significant direction from economic data. At 0730 CT, the December producer price index and retail sales reports are released, with many players believing the December sales report the more important. Retail sales are forecast to post a 0.3% decline over the November data, with the ex-auto component expected to increase 0.1%. Dana Johnson, head of research for Banc One Capital Markets, is among the analysts who think the retail sales report could show more weakness than expected. The trading rumor mill has been active all week, with speculation rampant the data will be weak enough to force another ease in interest rates before the Jan. 30-31 Federal Open Market Committee meeting. "The risk is for a much softer number," Johnson said, noting that weekly chain store sales and automobile sales have been soft. "If there's a surprise, it will be to the downside." At 1045 CT, Federal Reserve Vice Chairman Roger Ferguson speaks about the economic outlook for 2001 to the Bay Area Council Outlook Conference, in Oakland, Calif. The session ends at 1200 CT and open outcry trading doesn't resume until 0720 CT on Tuesday in observance of the Martin Luther King Jr. Day holiday. Pivot point resistance is pegged at 104 14/32 and 105 5/32, with support at 103 9/32 and 102 27/32.