PPI for August jumped up 0.6%, after being up 1.0% in July, but the core rate was unchanged leading to a headline on CNN that read “Wholesale prices in check”. Well, you know my attitude on this subject. Inflation is running much higher than reported.
The other news today was Best Buy (BBY) getting clocked for about 10% after a disappointing outlook for future revenues. And, tonight, Northwest Airlines, NWAC, along with Delta Airlines, DAL, are probably going to file for bankruptcy as early as Wednesday. This story has intensified after the fuel prices rose in the wake of Katrina, but according to the PPI we don’t have any inflation problem. There I go again.
Not much to report this evening except we did have a down day in the market today including the precious metals sector. Right now we are just managing to keep one eye on this dull market. As soon as we stop watching, it will move. Catch 22.
Dow Industrials: 10,597.44 -85.50 (no surprise, we’re back in the 10,500’s)
BGEIX: 12.11
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