Stocks were a little higher after generally tough news stories. Dow is up 27, advancers ahead of decliners 3-2 but NAZ is down 3. The Labor Dept reported inflation rose 1.1% last month (analysts had been expecting .4%), while the "core" number was a much more moderate .2%. For the last 12 months, inflation was up 6.9% & the core number was 2.7%. These numbers are high enough to be of interest to the FED when setting new interest rates. Foreclosures on homes in the US jumped 57% last month keeping housing in a severe recession. Oil is up again, surging near 114, another record & another kick in the head the economy would rather not have to deal with.
In company news, there were better reports. J&J (JNJ), a Dow stock, reported an excellent Q1 with profits up 40%. They are guiding for 4.40-4.45 EPS in 2008, a little ahead of their Jan guidance. Despite the good news, the stock is down 24¢. US Bancorp (USB), a member of the S&P Dividend Aristocrat list, reported earnings fell to 62¢ in Q1 from 63¢ last year, but beat analysts forecast of 61¢. They are setting aside more for loan losses but are in fairly good shape compared with ugly bank stories which have become so common.
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