Equities Market Roundup: Stocks Down on CPI, EU Crisis

Equities Editors Desk |

Gas Prices Consumer SpendingU.S. stocks were down over 1 percent in mid-day trading today but has since recovered some losses. All eyes are on U.S. consumer prices as April saw food and energy costs continue to increase rapidly. While the numbers aren't drastically high, the trend of rising costs on U.S. households could be a sign that the economy is not ready to recover, and worst, could be back on the decline. According to the U.S. Labor Department, consumer prices rose 0.4 percent last month, but if excluding food and energy, prices only increased 0.2 percent. However, major consumer goods companies like Proctor and Gamble (NYSE: PG), Kimberly Clarke (NYSE: KMB), and Colgate-Palmolive (NYSE: CL) have said in their Q1 conference calls that they plan to raise prices for their goods to offset the rise of material costs. Elsewhere, the financial crisis in the European Union also has investors uneasy because bailouts for their PIG countries (Portugal, Ireland and Greece) could cost more than previously expected.



Major U.S. Stock Indices

DJIA: 12,592.57 (-0.81 percent)
S&P 500: 1,338.07 (-0.78 percent)
Nasdaq: 2,831.73 (-1.09 percent)
Russell 2000: 836.58 (-0.49 percent)

In other news:

  • Just to give you an idea of how bad the U.S. budget deficit is right now, an overwhelming 2-to-1 majority of investors polled believe the government needs to raise taxes in order to fix its financial system. [Bloomberg]
  • Yum Brands (NYSE: YUM) continues to aggressively attack the Chinese market. The owner of KFC, Taco Bell and others is offering to buy Little Sheep, a hot pot chain in Asia. [NY Times]
  • Athletes and entertainment celebrities aren't the only ones that need to watch what they say on Twitter. Though Jim Cramer has become a celebrity in his own right. [Dealbreaker]
  • Is the dollar really moving higher? If so, commodities players may need to get a move on it, and fast. [CNBC]
  • So Facebook tried to throw Google (NASDAQ: GOOG) under the bus. [WSJ]

Check back for more news.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
CI Cigna Corporation 208.48 -0.68 -0.33 1,044,386 Trade

Comments

Emerging Growth

Viking Energy Group Inc

Viking Investments Group Inc provides professional advisory and consulting services to companies undergoing or anticipating periods of rapid growth, change or ownership transition.

Private Markets

iPRO Network, LLC

We provide the platform, tools, and resources to empower individuals and professionals to market desirable goods and services to the public, taking the place of traditional methods of commerce.

Voleo

Voleo is a free download that allows you to form investment clubs with your friends, family, colleagues, classmates, teammates…basically anyone you know and trust. Invest and manage a stock portfolio…