Yesterday, after four straight days of market gains, stock markets closed mixed. The Dow (blue chips) fell, while the NASDAQ (techs) ended up slightly with investors once again turning their attention to inflation and economy.
August retail sales rose a surprising 0.2%, but ex-autos, retail sales were weaker than expected. Meanwhile, and more reassuring, initial claims fell to their lowest level in two months, but then again, an unexpected 0.8 % rise in August import prices brought inflation concerns to the forefront once again, especially ahead of today's CPI report.
The main events early this Friday morning are Ford's restructuring announcement and the CPI report:
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At 8:30 a.m., investors would get a better handle on inflation as the main inflation reading, Consumer Price Index will be released at that time by the Labor Department. Consensus estimates both August CPI and core CPI (ex food and energy) would increase by 0.2%. In July CPI and core CPI rose by 0.4% and 0.2% respectively.
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As for Ford (F), according to CNNMoney and its sources, Ford's losses this year could be as much as $6 billion. Ford has unveiled its restructuring and cost cutting plan. Some details of the plan include cutting 14,000 salaried positions in an effort to reduce operating costs by additional $5 billion. Ford would also suspend its dividend. That comes after the UAW announced yesterday it had agreed to early retirement offers to some 75,000 hourly workers. General Motors has already taken similar action .
Other economic reports this morning include August industrial production and capacity utilization as well as September consumer confidence.
Bonds fell yesterday, with the yield on the benchmark 10-year Treasury note rising to 4.79% from 4.76% late Wednesday. Treasuries were little changed this morning.
Overseas Asian markets closed mixed. European markets are also mixed at the moment.
Futures are positive in early morning trade (8:00 a.m.), pointing to a higher start for stocks.
Here's a look at some key Blogging Stocks:
EBay Inc. (NASDAQ: EBAY) last traded at $28.14 in pre-market trading, up from yesterday's close of $28.05. Cramer reiterates his bearish call on eBay.
Google Inc. (NASDAQ: GOOG) last traded at $403.50 in pre-market trading, down from yesterday's close of $403.98. Is Google losing market share to Baidu in China?
Microsoft Corporation (NASDAQ: MSFT) last traded at $26.47 in pre-market trading, up from yesterday's close of $26.33. Microsoft plans a Zune-branded phone in the futures.
Yahoo! Inc. (NASDAQ: YHOO) closed at $29.03 yesterday. Yahoo, Google or Amazon.com could buy a controlling stake in Indian gaming firm Indiagames according to the Economic Times paper.










