- The Dow Down, But Not Out
- Bad News Hits Traders Hard
- Traders Already Eyeing Earnings
- In The Holiday Mood
- A Broad Advance
- Stocks & Ben Both Hold Their Own
- Traders On Bernanke's Hearings: "Nothing Good Will Come From This"
- Why The Fed Did Not Cause Stocks To Sink
- Durable Goods Causes The Big Pop!
- "Lowered Expectations" - The New "Green Shoots?"
|
CNBC'S MOST SHARED
- Market 360: The Week's Best & Worst
- Fireworks At Pharma's Market
- Value of Warren Buffett's Annual Gift to Gates Foundation Falls Along With Berkshire's Stock
- Michael Jackson: The Music And The Money
- Five Stock Picks for This Market
- Realities of the New Obama Refis
- Weak Dollar Means Gold at $1,040: Strategist
- Court Ruling Could Mean Trouble for TiVo
- Lance, Please Back Out Of Tour
- UBS Says It Stays Committed to US Brokerage
- Plan to Sell General Motors' Assets Is Approved
- China Launches Major Step to Yuan Internationalization
- China Says 140 Die in Rioting
- Obama's Russia Visit to Bring Over $1.5 Billion in Deals
- UK Spy Chief's Wife Posts Life on Facebook
- BOJ Shirakawa: Japan Corporate Finance Still Tight
- Alcoa to Post Loss — What Does This Mean?
- Biden: 'We Misread How Bad The Economy Was'
RSS FEED
More Videos
Text Size 
While the markets are relatively calm this morning, inflation worries are still at the top of everyone's agenda.
In China, a measure of inflation at the factory rose 8.2 percent in May, the highest in nearly four years, thanks to higher raw material costs. Inflation in Asia is a particular concern, because many countries there have very little account surpluses, heavily subsidize their citizens' fuel consumption, and import much of their food and energy. This includes Korea, the Philippines, Thailand and Vietnam.
That -- combined with a slowdown in exports -- is what has the Asian governments truly worried.
Inflation comments even seeping into analyst remarks. Today:
--Bernstein reduced the price target on Boeing [BA
Loading...
()
] , saying "The rise in oil prices during the last two months has created the risk that GDP growth will slow, which could shorten the commercial aircraft cycle."
--JPMorgan downgraded Alcoa [AA
Loading...
()
] , citing in part higher raw material costs (down 3 percent pre-open);
--Goldman Sachs lowered estimates on some of the big railroads due to higher fuel costs and lower volumes.
Elsewhere:
1) Ford [F
Loading...
()
] has already said it would be putting off its plan to return to profitability. Now, it's assembling a plan to rapidly shift entire truck plants in the U.S. to car production, specifically some of the small cars it is producing in Europe, according to The Detroit News.
This will be real test of Ford's ability to do a rapid turnaround -- not just to simplify the product line but to introduce more fuel efficient vehicles. Rapid turnaround is not something the auto industry is not known for.
2) One of the few industries that have advanced this month is fertilizers; companies like Agrium [AGU
Loading...
()
] and Potash [POT
Loading...
()
] remain near highs. On Wednesday, Agrium upped its earnings estimate for the second quarter due to strength in both its retail and wholesale business; up 8 percent pre-open.
3) Talbots [TLB
Loading...
()
] affirmed its 2008 earnings forecast and said it had received a $50 million credit facility from its majority shareholder, Aeon. Up 5 percent pre-open.
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes