CNBC's Rick Santelli discusses bond prices and yields.» Read More
Look for inflation to improve in the year ahead with the U.S. economy returning to the "comfort zone."
Both the Dow Jones Industrial Average and the S&P 500 ended the day higher – with the Dow setting another record, closing up 30 points and the S&P up 3 – all this despite worrisome economic data coming in the form of a rise in wholesale prices and a decline in housing permits. The NASDAQ couldn’t keep up, falling 6 points on continued weakness in the technology sector.
We told you earlier about the U.S. economic reports out today. And it seems inflation is back or at least it looks that way according to the latest wholesale numbers. November's overall PPI rose to a 32 year high. But looking back at last week--the data suggested consumer inflation was tame. So--can the government's data really be trusted? Is inflation a risk or not? CNBC’s Liz Claman asked two of the nation’s most celebrated economists.
Key U.S. economic data were released this morning. The Producer Price Index climbed 2% in November – 1.3% excluding food and energy. Also, housing starts were up 1.58 million units in November. That’s a 6.7% jump compared with a 13.7% drop in October. CNBC’s Steve Liesman and UBS Investment Research Chief U.S. Economist Maury Harris appeared on “Squawk Box” to break down the numbers.
In the last week before Christmas Scrooge is no where to be seen. The skeptics are being driven from the markets. It is nigh on impossible to find a strategist at the moment prepared to come on TV and tell you not to own lots of stocks going into 2007. Giles Keating, Head of Research at Credit Suisse is a case in point, it doesn't get much more Goldilocks than this: U.S. soft landing then reacceleration of growth in the second half of the year, Europe outperforms the U.S., and Japan (A STINKER THIS YEAR) recovers further. Safe in emerging markets, but hard to find value in bond markets. Inflation doesn’t threaten the party and corporate profits continue to roll along nicely, with partial confirmation from another guest –- Ed Thompson, Gartner (the tech research people) –- that corporate spending on software and IT is, if anything, picking up.
The Factoid Factory: If you’re a regular viewer of CNBC, you’re probably familiar with the dozens of market factoids we put on the screen. “Dow Hits New Intraday High”. “S&P 500 at 6-Year High”. “Nasdaq Could Close At Best Level Since The Dawn Of Time”. etc. T hose factoids are the responsibility of the Breaking News Desk....
Now that economists have had a chance to absorb today’s core CPI numbers, predictions abound as to how the Federal Reserve will react in 2007. Bill Griffeth quizzed two analysts during “Power Lunch.” They seem to agree a rate cut is coming – it’s just a question of when.
As we reported this morning, core inflation was unchanged in November. The market responded by shooting toward another record in the Dow. The index is just 30 points away from 12,500 after hitting a record 12,400 close yesterday. But not all economists trust the numbers. As Brian Sack of Macroeconomic Advisers said on “Morning Call” today, it’s “too early to sound the ‘all clear.’ ”
Inflation in the 12 nations using the euro currency rose to 1.8% in November, up 0.2% point from 1.6% in October, when it stood at its lowest of the year, the EU statistics agency Eurostat estimated on Thursday.
Our quote of the day comes from shipping magnate Aristotle Onasis: "The secret of business is to know something that nobody else knows." We're letting you know what's going on in China--with the American and Chinese economic talks. CNBC's Carl Quintanilla is on the scene with the latest today.....
U.S. import prices posted a surprising 0.2% rise in November even though oil import prices fell, according to a new government report this morning.
Finland's annual inflation rate jumped to 2.1% in November, the highest figure in almost five years, the government statistics agency said Thursday.
German consumer prices dipped in November as lower fuel prices caused an easing on costs in Europe's biggest economy.
Consumer price inflation in the United Kingdom accelerated to 2.7% percent in November compared to the same month a year ago -- the highest rate in a decade, the government said Tuesday.
The U.S. jobs numbers are out -- 132,000 new jobs – unemployment rate is 4.5% - and average hourly earnings are up 0.2%. On this morning's "Squawk Box," Mark Zandi, Chief Economist at Moody’s.com, along with CNBC’s Ron Insana and Steve Liesman sifted through all the data and weighed in on what it means.
In an exclusive interview on cnbc.com, Chicago Fed President Michael Moskow said inflation is moving in the right direction, but the Fed isn't prepared to let down its guard.
slower-than-expected rise in Japan's inflation rate threw cold water on hopes of an interest rate hike by the Bank of Japan
Average U.S. home prices rose 7.73% over the 12 months to Sep. 30, but the quarter-to-quarter gain was the lowest since 1998 and indicates a sharp deceleration in house price gains, the U.S. Office of Federal Housing Enterprise Oversight.