PPI biggest jump in 32 years.

Discussion in 'Trading' started by S2007S, Dec 19, 2006.

  1. S2007S


    We get the biggest jump on PPI in 32 years, markets open down and erases nearly every loss on the day....hmmmm

    US producer prices jumped a bigger-than-expected two per cent in November, the largest gain in more than three decades, on a spike in energy prices, a government report shows.
  2. S2007S


    and all the bulls are looking for rate cuts.. haha.
  3. rate hikes are bullish
  4. roscko


    how is a rate hike bullish?
  5. In a bull market they are :D
  6. My use of Marty Zweig's "don't fight the Fed" indicator has made the last half dozen or so hikes quite painful.:D
  7. Ordinarily, thinking logically I would say rate hikes are bad for stocks.... but if the past 3 years are any indication this market never met a rate hike it didnt like....
  8. Don't worry the PPI is just part of the soft landing scenario. Maybe it will be revised.
  9. PPI is completely useless and has very littl relationship to CPI. fed watches core CPI/core PCE, not core PPI. Core PPI was skewed higher by vehicle prices anyway which has been whipsawing the mkt.
  10. And the dollar fell, one fed governor speaks up about inflation being a problem and it may be necessary to increase rates and the market rallied.

    Look at commodity prices, corn, wheat, soy, metals, meats, energy. Energy looks to have bottomed and has started lifting off a two month base suggesting higher prices in the coming months=higher inflation.
    #10     Dec 19, 2006