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.
Deere [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.
Freddie Mac [FRE 24.96 --- UNCH (0%) ] reported a loss that was not as great as expected, up 4 percent. They're expecting to raise more capital ($5.5 b) soon.
Surprise! Macy's [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
