Stocks slightly off following wholesale inflation report
Wall Street opened slightly off, following data released this morning that showed wholesale inflation edged up less than expected.
In the first 20 minutes of trading, the Dow is just underwater.
The broader S&P 500 is down nearly two-tenths of 1 percent and the tech-heavy Nasdaq is down about the same amount as the Dow.
Wholesale inflation, as measured by the producer price index, rose 0.3 percent in October, the Labor Department said, shy of an expected rise of 0.5 percent. It fell 0.6 percent last month.
But if you strip out volatile food and energy costs, wholesale inflation actually dropped 0.6 percent last month, meaning disinflation is underway. Disinflation: a slowing of inflation. Not so bad. If it leads to deflation, however, that's trouble, because that means tumbling prices and wages.
Deflation hawks/worrywarts would like a small, healthy dose of inflation.
-- Frank Ahrens
Sign up to get The Ticker on Twitter
November 17, 2009; 9:59 AM ET
Categories: The Ticker | Tags: Dow Jones, nasdaq, s&p 500
Save & Share: Previous: GM to start repaying government loan -- sort of
Next: Post exclusive interview with Cisco's John Chambers: U.S. can't afford a second stimulus, no double-dip likely
Posted by: bsallamack | November 17, 2009 1:05 PM | Report abuse
The comments to this entry are closed.