economy on the rise

[strandinthewind]

and back to the economy in a more direct manner:

http://money.cnn.com/2004/06/17/mark...ex.htm?cnn=yes

PPI to eat at stocks

Futures turn lower after report shows big pickup in wholesale inflation.
June 17, 2004: 8:51 AM EDT

NEW YORK (CNN/Money) - Stock futures edged lower, indicating a weaker start on Wall Street, after the latest government report on inflation came in a shade higher than forecasts.

About 40 minutes before the start of trading, S&P and Nasdaq futures pointed to opening losses in the market.

U.S. producer prices shot up a hefty 0.8 percent last month, the biggest jump since March 2003, as prices for food and energy surged, the Labor Department said Thursday.

The core producer price index, which excludes food and energy prices, gained a larger-than-expected 0.3 percent. Economists surveyed by Briefing.com on average had expected a 0.6 percent rise in overall producer prices with the core index up 0.2 percent

In another sign that the economy continues to improve, claims for unemployment benefits fell last week, coming in below estimates. Initial claims for unemployment insurance dropped to 336,000 in the week ending June 12, the Department of Labor said. That's down from a revised 351,000 the previous week and below economists' estimates of 340,000.

In other news, influential bond fund manager Bill Gross of PIMCO told the Financial Times that he's worried about the outlook for the global economy.

"Too much debt, geopolitical risk and several bubbles have created a very unstable environment which can turn any minute," Gross was quoted as saying. "More than any point in the past 20 or 30 years, there's potential for a reversal."

Stocks ended little changed Wednesday as the market tried to digest the latest news on consumer prices, oil and comments from Fed officials about the outlook for the economy and interest rates.

Overseas, Asian stocks ended mostly lower while European markets were little changed in morning trading.

Treasury bonds edged lower, pushing the yield on the 10-year note up to 4.74 percent from 4.72 late Wednesday. Bond prices and yields move in opposite directions.

The dollar fell against the euro and Japanese yen.

Oil prices rose, supported by the stoppage to Iraqi exports after a series of sabotage strikes on key pipelines and a drop in U.S. gasoline stocks as peak summer demand approached.

U.S. light crude added 44 cents to $37.76 a barrel in electronic trading, almost $5 off the 21-year peak hit earlier this month, while Brent crude in London added 45 cents to $35.65 a barrel, Reuters reported.