Markets are are up this morning after macro economic news releases for CPI and US Industrial Output:
Consumer Price Index: CPI is “Tame”
Although food, energy and gas prices have risen, the Labor Department said core consumer prices rose only 0.01% excluding food and energy. This beat Wall Street expectations of 0.02% and has the market less concerned about Fed tightening to stop inflation. QE2 will continue to sail …
US Industrial Output: What Depression?
The Federal Reserve continued the positive economic news with US Industrial Output rising 0.4% in November. Although October’s data was revised down to 0.2%, Wall Street was happy with a 0.3% rise in factory output, 1.9% jump for utilities, 0.8% increase for high tech goods, 0.9% pop for business equipment, and a 0.7% rise in factory activity (ex-autos). On the down side, motor vehicle and auto-part production fell 6%.