More Signs of Moderating Inflation, Weak Housing Data
Stocks are a little soft in the first hour of trading, after opening slightly higher. This morning's report on core PPI showed it actuall fell -0.4%, the first back-to-back monthly declines since 2002. That is very bullish for inflation.
Also, housing starts fell more than expected (-6%), which is weighing on the homebuilder sector and causing many to bring up the argument again that weak housing data will weigh on consumer spending.
The combination of this data likely means that the Fed will be on hold longer than most currently believe.
In other news and notes:
- Piper downgrades AKAM on valuation
- Motorola confirms acquisition of SBL
- Toshiba recalls 340,000 SONY batteries
- AZO beats estimates by 13 cents; stock up
- WMT prices Zune at $284, slightly below iPod
- Rumor that AAPL could start selling ads on iTunes