Futures popped 8 points as CPI was a bit below expectations. Prior to the CPI, the bond market broke to lows for the year as the Wall Street Journal's front page (subscription required) asks, "Recession? Not So Fast, Say Some."
Dollar dropped a bit as the CPI report made it a bit less likely the Fed might hike rates to fight inflation.
Things are not going well in the U.K., where they are facing a real dilemma--the housing market is weakening, but inflation is high. They are unlikely to cut rates, despite the pressure from housing.
[DE 90.19 --- UNCH (0%) ] reported earnings in line with expectations, but stock is down 6 percent because earnings projections for the current quarter are a bit below expectations. Those wondering how much a stronger currency is having on corporate earnings get a clear answer from Deere: they are expecting equipment sales to increase 20 percent for the full year, of which 5 percent is due to currency translation impact.
[M 24.06 --- UNCH (0%) ] was supposed to report a modest loss of $0.02, but they reported a modest gain of $0.02, and on top of it reiterated their full year outlook. Up 8 percent.
Goldman Sachs jointed Oppenheimer and cut full year estimates for brokers, specifically Bear Stearns
[BSC 10.16 --- UNCH (0%) ] , Lehman
[LEH 42.95 --- UNCH (0%) ], and Morgan Stanley
[MS 46.61 --- UNCH (0%) ] , citing an "extraordinarily challenging" operating environment.
CPI Makes Fed Rate Increases To Fight Inflation Less Likely - Trader Talk with Bob Pisani - CNBC.com