The Dow is rolling today and has hit a 17-month intraday high as a drop in U.S. wholesale prices reduced inflation worries and have the bulls seeing green again.
The Labor Department reported a 0.6% drop in the producer-price index for finished goods in February, following an unrevised 1.4% increase in January. The news helped reduce Wall Street’s worry on inflation and the risk of higher interest rates. Yesterday, the FOMC said it will keep interest rates near zero for a little while longer.
The Dow is currently up 46 points, or 0.4%, to 10,732. The index reached an intraday peak of 10741 and is looking to close above its January high close of 10,725.
The S&P 500 is higher by 7 points and is at 1,166 while the Nasdaq is up 15 to 2,392.
Well, it looks like our prediction of Blockbuster (BBI, $0.26, down $0.13) came true sooner than we thought. The company declared in a SEC filing that it might be forced to file Chapter 11 bankruptcy if video rentals sales don’t pick up. Blockbuster is unable to restructure its debt and has about $1 billion in debt.
The market is following our road map but the fork in the road could be the vote on healthcare this weekend. We still think the market can climb the wall of worry and if the Dow can close ABOVE its January highs then we could see our second set of targets come into play for the indexes.
We have a lot to cover in our Members Area so let’s get to it.]]>