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- Financials Are Market Focus--Again
- Markets "Resolve" Nothing
- Market's Troubles: Commodites, Freddie And Fannie
- Alcoa Will Likely Set The Tone For Quarter
- The Bull And Bear Arguments
- The Big Issue For Stocks: Selloff In Materials
- Why Stocks Were Lower
- Million Dollar Portfolio Challenge: Trades of the Day
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- Bowyer: The Coming Obama Recession
- Farrell: Signs the Fed Will Defend Dollar?
- Weakening Steel
- Pieces in Place to Reduce Oil Price: Schork
- Will the BoE Keep Writing Letters?
- El-Erian: Commodity Surge Infecting Everyone
- LSE Shares Soar 11% on Quarterly Revenue Increase
- ExpressJet Airlines Suspends Commercial Operations
- Banks Boost Markets, Strategists Cautious
- GfK Mulls Cash Bid for TNS After WPP Swoop
- Macau's SJM Delays IPO Debut Amid Legal Challenge
- European Shares Set to Join Global Bounce

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
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] and Kellogg[K
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] both beat.
--International Paper [IP
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] 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
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] 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
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] 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
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] 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
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] 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
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] in line with expectations, lower end of guidance raised.
--United Online [UNTD
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] buying FTD group [FTD
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] , 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.
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