U.S. CPI Up 0.2%; Dollar Up, Stocks Down

123jump.com Staff
19 Feb, 2010
New York City

U.S. stocks edged lower after the Fed raised discount rate and increased the spread between fed funds rate. Consumer price index increased 0.2% in January, less than expected. The dollar increased and commodities traded mixed. Dell Inc dropped 7% after quarterly net declined 5%.

[R]10:15 AM New York – U.S. stocks edged lower after the Fed raised discount rate and increased the spread between fed funds rate. Consumer price index increased 0.1% in January, less than expected. The dollar increased and commodities traded mixed. Dell Inc dropped 7% after quarterly net declined 5%.[/R]

U.S. stocks edged lower after the Fed increased discount rate and began the process of unwinding emergency measures taken in the last two years. Consumer price index increased less than expected in January.

The index of consumer prices increased 0.2% in January. The unadjusted index increased 2.6% in the last one year to the month. The energy index increased 2.8% driving the index higher.

Core index, excluding food and energy prices fell 0.1%. With the unemployment rate near 10%, businesses are struggling to pass on price increases.

Commodities traded mixed. Immediate month futures delivery of gold decreased $3.60 to $1,115.10 an ounce. Crude oil increased 12 cents to $79.18 a barrel.

Yields on 10-year Treasuries increased 3.79% and 30-year bonds to 4.72%.

Stock Movers

CBS Corp ((CBS)) decreased 3.7% to $13.21 after the diversified media group sales fourth quarter net declined on weak billboard and radio advertising.

California Pizza Kitchen, Inc ((CPKI)) increased 2.2% to $14.51 after it reported

Dell Inc ((DELL)) dropped 6.7% to $13.45 after quarterly net declined 5% to $334 million.

First Solar, Inc ((FSLR)) declined 6.6% to $117.6 after China based solar panel maker reiterated its 2010 sales and earnings outlook.

Intuit Inc ((INTU)) surged 7.9% to $32.74 after second quarter net was ahead of market expectations.

Morningstar, Inc decreased 1.6% to $43.90 after net income in the quarter fell 25% to $1.44 million.

Earnings Review

Dell Inc., the technology company said fourth quarter revenues rose 11% to $14.9 billion from $13.4 billion a year ago. Net income in the quarter fell 5% to $334 million or 17 cents per diluted share compared to net income of $351 million or 18 cents per share a year ago.

Net revenues for the fiscal year 2009 fell 13.4% to $52.9 billion from $61.1 billion a year ago. Net income for the year fell 44% to $1.4 billion or 73 cents per diluted share compared to net income of $2.5 billion or $1.25 per share a year ago.

Morningstar, Inc., the financial data-tracking firm said fourth quarter revenues rose 2.8% to $122.6 million from $119.3 million a year ago. Net income in the quarter fell 25.4% to $14.4 million or 29 cents per diluted share compared to net income of $19.3 million or 39 cents per share a year ago.