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Investors didn’t like the PPI headline this morning, as inflation can be bad for the stock market.

However, inflation can be good for companies that have the pricing power, so we try to look through the industry breakdown in PPI for clues as to who those companies may be.

For example, fruit and vegetable canning continues to exhibit strong pricing power:

fruit veggie

Yet the market downturn has led Del Monte (DLM) to give back most of its recent gains.

dlm

Meanwhile, corrugated box pricing has rolled over.

boxes

When combined with a slowdown at the consumer level, we think this could be bad news for the transportation companies that will have fewer boxes to move around.

fdx

Just when we were ready to give up the ghost, the weaker industrial gas prices appears to have broken through to Air Products (APD):

industrial gas

apd

Industrial valve prices are telling us to be patient with Curtiss Wright (CW):

industrial valve

cw

Finally, we have to point out the semiconductors. A price increase is unheard of in this industry, yet supposedly there was one. This is definitely the first we’ve heard about it, but it is worth pointing out just in case.

semis

smh

It would certainly make the market appear less bullish than we had thought.

Source: Stock Ideas From Today's PPI Report: Del Monte, Fed-Ex, Air Products, Curtiss Wright, Semis