The market is meandering, perhaps pondering any day filled with news that casts a little light on the state of the recovery. Sure, new housing starts and permits foreshadow a smidgen of confidence and petroleum demand was stronger than expected last week, but this isn't the kind of stuff that sparks a long in the tooth rally even higher. Then there is the war on business and the coming cage match between Intel (INTC) and the Federal Trade Commission (FTC). They say you can't fight city hall and surely these kinds of deals seem to have one conclusion. The decision that Intel has to make is whether to drag out the fight or just bite the bullet now. Considering the company is appealing the $1.45 billion fine from the EU Commissioner it's clear that they will defend against the administration. I can't say for sure if Intel is a bully or just a well-run business, but I worry about this notion that the playing field must always be leveled by breaking the knee caps of the excellent to appease the mediocre.
Economic Data
Consumer Price Index (CPI)
The Consumer Price Index came essentially in line with forecasts for November, increasing by 0.4% month to month in total and remaining flat excluding food and energy. After the PPI report showed a much bigger than expected increase yesterday, it was good to see that consumers weren't receiving the same kind of inflation, which should come as some sort of a relief. It also leaves room for the Times "Man of the Year" Ben Bernanke to hold rates near zero amid increasing pressure for him to raise them again to avoid inflation. This is giving the dollar some downside pressure today and raising the gold sector. Digging into the details, there were no big surprises. Energy prices led the way with a 4.1% increase month to month, and transportation increased by 2.3%.
WSS Newsletter Preview: Forgotten Act about to be Back on Stage
By: Brian Sozzi, Research Analyst
On May 22 of this year, President Obama signed into law the Credit Card Accountability Responsibility & Disclosure Act. The Act received overwhelming majority votes by the House of Representatives and Senate. I am all for regulation designed to bolster transparency to sometimes unknowing U.S. consumers, and in many respects the Act does just that. Among other things, it requires plain sight documentation of hypothetical payment schedules and curtails excessive, hidden fees. However, in the haste to increase the role of government in private enterprise, the Act aims to do away with instant credit offered by the nation's retailers.
The remainder of the piece may be accessed in our upcoming Newsletter.
Disclosure: None