Wednesday, May 14, 2014

Economic Journal - Wednesday, 5/14/2014

(As of 7:20 am PST)
 
US stocks opened lower today after a nice start to the week as investors waded through economic data and a mixed batch of earnings results.  Causing the greatest concern was a report on wholesale prices which showed prices jumped 0.6% in April, the largest increase since 2012.  The second straight month of sharp increases has some investors worried that this could be the beginning of a pickup in inflation.  However, many economists have been quick to warn against reading too much in to the recent data, as the PPI index recently changed some of its key measurements.  Nonetheless, it is something to keep an eye on, and certainly has caused some concern today.  Mixed earnings results from Macy’s, Deere & Company and Plug Power are adding to the negative sentiment early, while investors also sold down shares of Cisco Systems ahead of the company’s earnings announcement after the bell today. International markets are mixed while gold and oil are rallying.  Interest rates took a dive with the 10 yr. treasury yield hitting 2.55%.  After posting record highs earlier this week, the Dow Jones and S&P500 look set to take a break in today’s session.

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