Dow -199.48 (-1.53%)
Nasdaq -23.83 (-0.95%)
S&P 500 -13.23 (-0.93%)
News That Moved the Market
Markets Stumble on Inflation Data and Surging Oil. Stocks began the session lower and were never able to recover. Before the open, the Labor Department announced April's Producers Price Index increased 0.2%, while core-PPI, which excludes energy and food, jumped 0.4%. The higher than expected core-PPI in addition to the fact core prices have risen 3.0% year-to-year, the most 1991, was unsettling to investors, and sparked the negative sentiment that spread throughout the market as the session went on. Consumer strength was also under question after Home Depot (HD, -5.2%) reported a 66% drop in profits and weaker housing conditions. Making matters worse, oil gained 1.6%, settling at $129.07/barrel. Oil's next resistance should come at $135/barrel.
HP Results Mixed. HP (HPQ, -0.5% day; -0.65% A.H.) reported a 16% increase in profits after the bell Tuesday, no surprise as the company pre-announced the results last week. U.S. sales were sluggish, with 70% of revenues coming from outside the U.S. CEO Mark Hurd did comment on the $13.9 billion acquisition of EDS (EDS, +0.0%), saying it would allow HP to reach important corporate accounts.
Quick Tics: Federal Reserve Vice Chairman Donald Kohn implied the Fed should keep rates steady in the short-term in a speech today in New Orleans…Profits at Target (TGT, -1.1%) fell 7.5% last quarter.
Notable Earnings (Full List Here):
BJ's Wholesale (NYSE:BJ) Morning
Hot Topic (NASDAQ:HOTT) Afternoon
PETsMART (NASDAQ:PETM) Afternoon
10:30 AM: Crude Inventories
2:00 PM: FOMC Minutes