12/15/09

U.S. producer prices were up more than expected in November, mostly due to energy costs. (Analysts seemed to believe that the PPI was only going to be up last month.) Year-over-year the PPI was up 2.4% in November versus an expected number of +1.6%. Gas was up over 14%, hurting Escalade and Hummer drivers everywhere, and the “core rate” without food and energy was +.5%. Although we still have Industrial Production and Capacity Utilization ahead this morning, currently the bond market is taking the news on the chin and mortgage prices are worsened