Closing Bell: Good inflation data wins, but sellers lighten gains

Posted May 14th 2008 4:22PM by Jon Ogg
Filed under: After the Bell, Earnings Reports, Market Matters, Whole Foods Market (WFMI), Economic Data, Deere and Co (DE)

Today's inflation report was the main reason for the rally as it looks like prices nominally are not getting much worse. But as I noted, that's true if you don't go to the gas station or grocery store. Home foreclosures rose yet again, and that may be something to get used to. Oil prices were down down $1.86 to $123.94 per barrel in after-hours trading. Here are the unofficial closing index levels:

DJIA 12,890.64 (+58.46; +0.46%)
S&P500 1,407.87 (+4.83; +0.34%)
NASDAQ 2,495.66 (+0.54; +0.02%)
10YR-TBond 3.938% (+0.029)
52-WEEK LOWS
10 ANALYST CALLS

China Architectural Engineering, Inc. (AMEX: RCH) saw another massive rise today based upon the Chinese earthquake. Shares were up 40% at $8.38 at the end of the day. Architecture, engineering, China, earthquake... what more did traders need to hear?

Deere & Co. (NYSE: DE) saw a sharp drop in shares after reporting earnings, and it pulled down other ag-stocks. The company said it was being impacted by tight part supplies and rising materials costs, and that sent shares tumbling 10% to $81.10 in the final minutes today.

Fushi Copperweld, Inc. (NASDAQ: FSIN) rose a sharp 14% to $21.90 late in the day after it blew past revenue targets with a 155% gain in revenues.

Jack in the Box Inc. (NYSE: JBX) must be more economically sensitive than other fast-food restaurants out there. Its shares were down over 10% at $$25.00 late in the day after its earnings report.

Macy's Inc. (NYSE: M) saw a 4% rise late in the day to $25.07 after the company's earnings came in better than the reduced estimates; the company also reaffirmed its prior sales forecasts for 2008.

Whole Foods Markets (NASDAQ: WFMI) saw shares pounced after the company's earnings and guidance failed to impress investors. In fact, the results were very unimpressive. Shares were down over 12% at $29.40 late in the day.

Tags: FSIN, inthenews, JBX, M, RCH, WFMI

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Reader Comments (Page 1 of 1)

5-14-2008 @ 8:39PM

Americas Watchdog said...

Jon;

We have the Corporate Whistle Blower Center & inflation is down? What a bunch of bull S%$T. Once again we have the government involved in cooking the books & once again the please buy stock(s) market buys it hook line & sinker.

Please ask any consumer if inflation was done in April. Just find one. We would suggest any investor in the US stock market get out & sit on the side lines. This is going to end really ugly. The March 2008 Bull Sh*! Run. & no inflation in April of 2008? "The credit crisis is almost over=more BS!

We were impressed that CNBC bought into it as well. Perhaps some day they will mention the auction rate securities $320 billion dollar fraud. But the again what would their stock brokerage clients say?