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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (2275)	2/11/2003 9:12:18 AM
From: Lone Ranger	Respond to of 10065

Wally, Know this wasn't addressed to me but.......I wouldn't say sell this rally would I?<g>

To: Wally Mastroly who wrote (2275)	2/20/2003 11:08:03 AM
From: Boca_PETE	Read Replies (1) \| Respond to of 10065

Wally M: re:("Producer Prices Up Sharply in January... Jobless Claims Surge") biz.yahoo.com Reuters Producer Prices Up Sharply in January Thursday February 20, 10:23 am ET By Anna Willard WASHINGTON (Reuters) - U.S. wholesale prices soared last month at their fastest pace in more than a decade, spurred by rising energy and auto costs, while jobless claims jumped and the U.S. trade gulf widened in December, according to government reports out on Thursday. Overall producer prices climbed 1.6 percent, the largest rise since January 1990, surpassing forecasts for a 0.5 percent increase. The move followed a 0.1 percent drop in December. Excluding volatile food and energy goods, prices still rose 0.9 percent, the fastest since December 1998 and also way above forecasts of 0.1 percent. But analysts sought to play down the importance of one month's data. "I told our folks on the trading floor not to blow a gasket on the PPI number," said Mark Vitner, senior economist at Wachovia Securities. "I don't think this is a bucket of cold water over our heads saying wash those deflation nightmares away, we need to worry about the inflation boogeyman." Nevertheless, the report will likely come as a surprise to Federal Reserve Chairman Alan Greenspan, who said last week that he sees little sign of inflation in the economy. "We're still looking at the broad measures of average inflation and the best statistics that we have still indicate very low inflation with no evidence of an acceleration," Greenspan said. However, the central bank chief had also said the Fed would continue to watch for any emerging inflation pressures. The Fed and financial markets will be looking at Friday's report on U.S. consumer prices for a more complete picture of inflation pressures. JOBLESS CLAIMS SURGE Separately, the Labor Department reported that initial claims for unemployment aid rose 21,000 to a seasonally adjusted 402,000 for the week ended Feb. 15, worse than the 382,000 expected by analysts. Some economists view claims above the 400,000 level as a sign of a deteriorating jobs market. The four-week moving average, a better guide to the health of the jobs market because it irons out weekly fluctuations, rose to 394,750, an increase of 4,750 from the previous week. The department said it had to make claims estimates for a small number of states that had difficulty providing their numbers due to the snow storm on the East Coast. But it said there was no reason to believe the numbers were skewed or that they would be subject to large revisions. The U.S. trade deficit unexpectedly jumped 10.6 percent in December to a record $44.2 billion, as the demand for imports continues to grow and exports slumped, the Commerce Department said. The monthly trade gap far exceeded the average estimate of $38.8 billion by analysts before the report and pushed the tally for the year to a record $435.2 billion, as U.S. exports fell for a second year. "That tells me not only is the global economy not strengthening, but it's getting weaker," Vitner said. In Thursday's report, gasoline and home heating oil prices surged as cold winter weather boosted demand and uncertainty over a possible war in Iraq took its toll on energy prices. Gasoline prices climbed 13.7 percent while heating oil rose 19.7 percent. "The report shows that energy prices could still hurt us. The Fed doesn't have as much room to play with," said David Wyss, chief economist at Standard & Poor's in New York. Passenger car prices showed their fastest gain since October 1986, up 3.5 percent. Automakers cut back on financial incentives in January, pushing up prices, after a attractive offers fueled a bumper month for car sales in December. "It was tied to the ending of some manufacturers' incentive programs. When you take out motor vehicle prices, core PPI would have risen 0.3 percent," said Vitner. Prices in sectors outside autos and energy also rose. Pharmaceutical costs climbed 1.2 percent and capital equipment prices rose 0.7 percent. Food prices were up 1.6 percent. The report showed some inflation pressures building down the pipeline. Intermediate goods prices rose 1.3 percent but excluding food and energy the increase was a more subdued 0.3 percent. At the crude goods level, prices climbed 6.9 percent, rising 1.0 percent without food and energy. ---------- Without pricing power, this does not bode well for corporate profits IMHO. P