At mid day on Friday the major market indexes were all trending in the green as
investors received positive reports on inflation and consumer sentiment that
outweighed the latest corporate earnings reports, which fell short of
expectations. The Consumer Price Index, which is the government's key
inflation measure, showed that prices rose 0.5% in March. The core CPI reading,
which strips out food and energy prices, rose only 0.1%. The Consumer Price
Index rose in March 2.7% from one year earlier levels and the core reading
increased by 1.2% from a year ago. The core reading is considered to be a better
long-term predictor of inflation. Although the reading has eased inflation fears
for economists, the reading provides no comfort to consumers who continue to pay
higher prices for food and gas as companies pass along their costs to consumers.
Food prices have jumped 0.8% in March making an overall increase of 2.9% from a
year ago. The University of Michigan showed that consumer sentiment rose from
67.5 in March to 69.6 in April, topping economists forecast of 69. The Federal
Reserve reported that U.S. industrial production rose 0.8% in March, just above
economists forecast. Ireland was reportedly hit with another downgrade by Moodys
Investors Service. The countrys credit rating was cut to Baa3, putting it one
notch above junk status. Approaching close the major market indexes are all in
the green. The Dow gained 56.68 points or 0.46% to 12341.83. The Nasdaq rose
4.4. points or 0.16% to 2764.65. The S&P 500 increased by 5.16 points or 0.39%
to 1319.68. The Treasuries 10 year yield was down 0.08 to 3.41%. Oil rose 1.37
to $109.48 a barrel. Author: Pamela Frost
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