- Stocks Lurking Near New Highs Again
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
- Light Volume Has Traders Complaining
- Gold Shatters Another Record
- Have Retailers Reached Their Limits?
- The Retail Mind Game
TRADER TALK RSS FEED
MOST SHARED
- US Shoppers Spent Less Over Black Friday: NRF
- Tiger Woods Wants to Protect Family Privacy: Agent
- Dubai Stocks Shed 7%, Abu Dhabi Tumbles 8%
- South Korea Sees Exports Bouncing, but Risks Remain
- Dubai's Nakheel Seeks Suspension $5.25 Billion in Bonds
- Dubai is Harsh Reminder of Prolonged Global Recovery
- US Senator Opposes Fed Chief Bernanke Renomination
- Sands China Ends 10.2% Lower in Hong Kong Debut
- Japan Won't Intervene to Weaken Yen: Finance Minister
- Tamminen: Copenhagen And Beyond
- Dubai is Harsh Reminder of Prolonged Global Recovery
- Tiger Woods Wants to Protect Family Privacy: Agent
- Portfolio Prep for Next Week: 'Don't Get Crazy'
- U.S. Stocks Fall on Dubai Worries
- Black Friday at Best Buy
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Dubai World Debt Gets No State Guarantee: Official
- Dubai Stocks Shed 7%, Abu Dhabi Tumbles 8%
- Regulators Compile Global List of 'Systemic Risk' Banks
- BofA Aims to Clearly Spell Out Credit Card Terms
- What Black Friday Shoppers Spent on – And Where
- Partridge Demand Slump Doesn't Offset '12 Days' Costs
- Dubai's Nakheel Seeks Suspension $5.25 Billion in Bonds
- A Weak IPO Debut for Las Vegas Sands' Macau Unit
- US Senator Opposes Fed Chief Bernanke Renomination
More Videos
Trader Talk
Text Size 
Futures trading higher first on a better than expected ADP report, then on a better than expected GDP report.
The Street has been acting like the long commodities/short dollar trade is coming to an end; the wording of the Fed's statement will determine if that is really the case. It may be unlikely for them to change their bias toward lower rates this early, but they will almost certainly sound more hawkish on inflation.
But will inflation be with us for the foreseeable future? Ned Davis, in a note to clients, noted that there are elements that indicate that inflation may lessen in the near future: 1) labor costs are in check, 2) inflation normally ebbs during recessions, and 3) the debt bubble and credit squeeze normally have serious deflationary potential.
Are the world's central banks starting to turn? The Bank of Japan gave up its two-year bias toward rising rates and warned of downside risks to the country's economy. They kept interest rates at 0.5 percent. They warned that inflation posed a risk to the economy. Will the ECB follow?
Elsewhere, the two big trends continue: commodity inflation is a real concern, and strong international sales and a weak dollar are offsetting U.S. weakness.
1) Inflation watch:
--Despite higher costs, Dean Foods [DF
Loading...
()
] and Kellogg[K
Loading...
()
] both beat.
--International Paper [IP
Loading...
()
] short of expectations, and again inflation is the issue. They were able to raise some prices, but not fast enough to keep up with material costs.
2) International sales strong:
--GM [GM
Loading...
()
] smaller than expected loss. International sales up 20 percent. Not clear what impact the American Axle strike has had on sales. Up 5 percent pre-open.
--Engine maker Cummins [CMI
Loading...
()
] beat, and strong international sales (57 percent of sales are now overseas) helped offset rising commodity prices and sluggishness in the U.S.
--Colgate [CL
Loading...
()
] reported U.S. sales up 7 percent, while international sales were up mid to high double digits. To offset higher prices, they have been trying to shift to higher-margin items.
Misc:
--Citi [C
Loading...
()
] prices at $4.5 b common stock offering at $25.27. It was supposed to be $3 b, at least that what was said yesterday, but it was increased "in response to strong demand."
--Proctor & Gamble [PG
Loading...
()
] in line with expectations, lower end of guidance raised.
--United Online [UNTD
Loading...
()
] buying FTD group [FTD
Loading...
()
] , for what amounts to $15.08 per share, which includes about half cash and half United Online notes. FTD closed last night at $13.50.
LATEST FROM TRADER TALK
Questions? Comments?
POPULAR TRADER TALK POSTS
- Stocks Lurking Near New Highs Again
- Risk Trade Is Back On
- This Week's Biggest Story: The Dollar
- Corporate Issuance Continues at Torrid Pace
- The Bernanke Dollar Bounce & Gross Says Forget About Rate Hike
- Colgate Really Sparkles After Hours
- Light Volume Has Traders Complaining
- Gold Shatters Another Record
- Have Retailers Reached Their Limits?
- The Retail Mind Game
Data is a real-time snapshot *Data is delayed at least 15 minutes