July 17 (Bloomberg) -- Prices paid to U.S. producers unexpectedly dropped for the first time in five months, restrained by declines in fuel and food costs.
The 0.2 percent fall followed a 0.9 percent increase in May, the Labor Department said today in Washington. Core prices, which exclude food and energy, rose 0.3 percent, reflecting a jump in automobile prices. Excluding passenger cars, core prices were up 0.1 percent.
Core is up and that's a problem if you get away from the headlines. Rising oil is a concern as well. The markets might be on edge ahead of tomorrow's CPI, although there could be sentiment support ahead of INTC. Take your pick. JNJ had a bid earlier but is now red.
As for financials, I would use strength to exit as rates start rising again.
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on Tuesday, July 17, 2007 at 7/17/2007 08:37:00 AM.
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