Inflation News Hikes Stocks: ; Investors See Low Wholesale Price Increase As a Good Sign
Charleston Gazette › April 20, 2005
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NEW YORK - Investors cheered by long-awaited good news on inflation pushed stocks higher Tuesday, hoping that a lower-than- expected increase in basic wholesale prices meant the economy will stay on a sound footing. Solid first-quarter earnings also fueled buying.
Wall Street had feared that the Labor Department's Producer Price Index, which measures wholesale prices, would show inflation taking hold in the economy. But while the PPI rose 0.7 percent for March due to higher energy and food prices, the closely watched "core" PPI without those volatile costs grew just 0.1 percent, less than the 0.2 percent economists expected.See the full content of this document
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Inflation News Hikes Stocks: ; Investors See Low Wholesale Price Increase As a Good Sign
"We're finally seeing some numbers that point to less inflation in the pipeline," said Lincoln Anderson, chief investment officer at LPL Financial Services in Boston. "Coupled with a pretty strong earnings outlook for the ...
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