Tuesday, May 20, 2008

Trend Setting Tuesday

Trend Setting Tuesday, May 20th brings the Producer Price Index (PPI) at 8:30 ET.
The data measures prices paid for goods, not services, at their wholesale level. The PPI measures a wide range of goods at their unfinished stage and with energy prices only rising recently, can anyone be optimistic about this report? The core PPI subtracts food and energy prices, which to many is an outrageous gauge, as food and energy have definitely NOT lived up to their historical cyclicality. Food and energy prices are in nose bleed territory in POTC's opinion and discounting that is foolish. The year over year (y/y) PPI stands at 6.9%, and the 25 year high mark came last January at 7.4%. POTC feels the current administration must force the hands of Congress and the House to open up drilling in more U.S. territories. With the advancement of science in the past decade, horizontal drilling techniques are highly effective and environmentally friendly measures have come a far way from the early 1950s. After market earnings come from Analog Devices (ADI) Q2 2008 estimate for $.41/share, and Intuit Inc (INTU) Q3 2008 estimate for $1.29/share.


Anonymous said...

This administration stinks, we need Nader to run. Good prediction on PPI.

Anonymous said...

How would Nader fix everything? And Nader is running

Anonymous said...

Ralph Nader would eliminate all the red tape, i.e. Dept of Education, IRS, etc etc. just my opinion/thought dude, do you think Bama or Hill or Mac are any better for real policy changes?