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PowerShares DB Agriculture Fund(DBA) Investors looking to benefit from surging food prices could consider DBA that invests in widely traded agricultural commodities through futures. Click to get this free report >> PWRSH-DB AGRIC (DBA): ETF Research Reports GRNHVN-CONT CMD (GCC): ETF Research Reports US-COMMODITY IF (USCI): ETF Research Reports To read this article on Zacks.com click here. Underperformance in the last couple of years, mainly due to increased output and economic slowdown in emerging markets, left investors wondering whether the commodities "super-cycle" was dead.
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In a piece for Yahoo Finance Monday, Zandi said that with full employment, the plan will usher in stronger inflation and higher interest rates. Those that have seen share price dips due to business setbacks could benefit heartily from the tax breaks, though investors should think long term about the beneficial effects and not expect immediate results. Since the recession, many companies have failed to put additional profits to work, which deflates the lawmakers' idea that tax cuts will be covered by increased spending.
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IAMGOLD Corp. (IAG): Gold Industry. Early Tuesday gold prices hit a new nominal high of $1,917/oz only two weeks after rising above $1,800 for the first time. He believes that gold prices will likely soon threaten their inflation-adjusted high around $2,200 an ounce -- another warning bell of things getting a little too frothy, he said.
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On Nov 28, 2014, we issued an updated research report on Chipotle Mexican Grill Inc. ( CMG ). Click to get this free report CHIPOTLE MEXICN (CMG): Free Stock Analysis Report BJ'S RESTAURANT (BJRI): Free Stock Analysis Report RUBY TUESDAY (RT): Free Stock Analysis Report DINEEQUITY INC (DIN): Free Stock Analysis Report To read this article on Zacks.com click here. In late April, Chipotle raised menu prices in the range of mid single-digits for the first time in three years to counter commodity inflation.
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(RTTNews) - A report released by the Commerce Department on Friday showed U.S. personal income rose in line with economist estimates in the month of August, although personal spending inched up by less than expected. "The August personal spending figures, which incorporated downward revisions to earlier months, suggest that third-quarter real consumption growth was 2.6% annualized, well below the 3.5% gain we previously anticipated," said Paul Ashworth, Chief U.S. "Alongside the slowdown in consumption growth, the rebound in underlying inflation is making the Fed's job just that little bit harder," Ashworth said.
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Carmax ( KMX ) and Darden Restaurants ( DRI ) are the only two earnings reports scheduled for tomorrow. US Treasuries rallied early in the session, with the curve steepening significantly as investors priced in higher inflation, only to experience a sharp selloff later in the day. The $7 billion auction of 30-year Treasury Inflation Protected Securities ( TIPS ) received strong demand, but at yields above what most participants had expected.
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Brazilian retailer Companhia Brasileira de Distribuicao ( CBD ) reported second quarter 2013 earnings of R$0.16 (8 cents per share) compared with R$1.00 per share (51 cents per share) in the year-ago quarter. Our Recommendation We are impressed with CBD's strong market position and economies of scale that have helped the company deliver strong results despite continued weakness in consumer expenditure. However, inflation in Brazil is denting CBD's food business and the company is struggling hard to keep prices down.
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At the same time, rise in raw material costs are expected push inflation higher as manufacturers have to pay more because of tariffs levied by the Trump administration on products such as lumber, aluminum and steel. Apollo Commercial Real Estate Finance, Inc.ARI operates as a real estate investment trust (REIT) that primarily originates, acquires, invests in, and manages commercial first mortgage loans, subordinate financings, and other commercial real estate-related debt investments in the United States. It primarily explores for gold, silver, and copper deposits.
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Thinking about how much it will cost to send their children to college is enough to provoke anxiety in most parents. A four-year course of study at a public institution can run to more than $100,000 even at in-state tuition rates, and a bachelor's degree from a private university can cost twice that. Saving for college is particularly challenging given that the cost of education continues to rise faster than inflation.
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Monthly retail sales were out today, with Abercrombie & Fitch( ANF ) seeing the biggest pop out of all the reports. There was an interesting read in the Wall Street Journal this morning, talking about some Federal Reserve officials considering pushing the inflation button to try and fix what is ailing the economy right now. Meanwhile, Wall Street is celebrating market gains, but when I see commodity prices screaming higher, I know this will eventually hit the consumer in many ways that will not benefit those who are not invested in the high-beta momentum stocks of the day.
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(RTTNews) - Largely reflecting a rebound in energy prices, the Labor Department released a report on Friday showing a modest increase in U.S. producer prices in the month of July. A 0.3 percent drop in prices for services less trade, transportation, and warehousing more than offset modest increases in prices for trade, transportation, and warehousing services. The Labor Department is scheduled to release its more closely watched report on consumer price inflation in the month of July next Tuesday.
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Equities climbed, bonds fell, and the so-called fear index, the VIX , began its descent to today's eerily low level. First, Trump vowed on the campaign trail to dismantle the Dodd-Frank Act , which was passed in 2010 to combat the abuses that fueled the financial crisis. Finally, Trump's promise to pour money into infrastructure projects, combined with other initiatives, could spur inflation, which would presumably prod the Federal Reserve into raising interest rates.
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Even independent oil and gas companies like Anadarko ( APC ) , Devon Energy ( DVN ) , or Pioneer Natural Resources ( PXD ) leave much to be desired in the yield category. Worldwide consumption is forecast to rise nearly +2% to 86.2 million barrels a day in 2010, according to a monthly report from the International Energy Agency. The massive increase in debt issued by the U.S. government has raised the specter of inflation, which could continue to put upward pressure on commodities like gold and oil.
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Investors are buying more U.S. Treasury Inflation Protected Securities (TIPS) as well as European index-linked government bonds. TIPS represent only 6.5% of U.S. government bond trading tracked by Tradeweb, while index-linked bonds represent only 6.3% of European government bond trades. This week, the U.S. government sold $5 billion in 30-year TIPS, with strong results.
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Data showed that consumer inflation accelerated in the previous month, spooking investors and creating fears that China will have to go through another rate hike cycle. Copper futures fell 0.73 percent to $368.20 per pound as investors worried that China will not grow as fast as expected, hampered by strong inflation. Brands (NYSE: YUM ) shares fell 1.13 percent pre-market as the company released a formal apology for mistakes made in China and also as Chinese inflation spooked investors.
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However, stiff competition from the likes of Cardinal Health ( CAH ) and PharMerica Corp. ( PMC ), and a booming inflation in high-cost branded drugs pose major headwinds. Click to get this free report OMNICARE INC (OCR): Free Stock Analysis Report CARDINAL HEALTH (CAH): Free Stock Analysis Report MCKESSON CORP (MCK): Free Stock Analysis Report PHARMERICA CORP (PMC): Free Stock Analysis Report To read this article on Zacks.com click here. Earnings per share (excluding special items and cash EPS adjustments) increased 9.2% from the year-ago quarter driven by 6.1% growth in net sales, higher operating efficiencies.
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My recommendation is the SPDR Financial Select Sector ETF (NYSEArca:XLF), which invests in a basket of 83 U.S.-based financial firms. But now that the probability of a double-dip has subsided, I think there are good reasons to be in stocks, and I'll try to make the case for reluctant investors to move at least some of their money out of cash and into equities next year. Another theme worth exploring for investors is rising food prices, and the Market Vectors Agribusiness ETF (NYSEArca:MOO) is a good mousetrap for taking advantage of the trend.
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Investors get exposure to the large-cap software names such as Oracle ( ORCL ) and Microsoft ( MSFT ) as well as lesser-known companies that specialize in cloud computing. A weak dollar, inflation, and the fact that precious metals are becoming a permanent asset class are three major reasons I think both gold and silver can continue to hit new highs in the New Year. As countries such as China, Brazil, and India continue to accumulate wealth, it will be passed along to growing middle classes that will have significant disposable income for the first time.
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President Obama argued the country couldn't afford those for families in the highest tax brackets, but failed to apply such reasoning to temporary benefits bestowed on Democratic constituencies by his 2009 stimulus program. Just the fear of inflation causes investors to demand higher interest rates on virtually all dollar-denominated bonds issued by government agencies, banks and corporations. As Washington spends and borrows, the Treasury will have to offer higher rates on new 20 and 30 year bonds, making comparable securities issued in 2010 and earlier worth less in the resale market.
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Some of the more popular products using this strategy, like United States Oil ( USO ) and United States Natural Gas ( UNG ), substantially underperformed their spot commodities due to a persistent and outsized negative roll yield. For instance, UNG lost 12% of its value during the summer of 2007 while the spot commodity actually gained 1%. As the Fed executed extremely loose monetary policy, hoping to prevent a deflationary spiral through the direct injection of capital to the economy, inflationary fears began to surface.
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Geithner has stated that the Treasury will defer and delay some payments to create approximately $200 billion worth of additional room under the ceiling, but exactly how much time this buys is unknown. Newly appointed Japanese Prime Minister Shinzo Abe has announced some of his cabinet members economic advisor Hamada spoke overnight, stating that the BoJ should consider buying more longer-dated JGB's and other longer-dated assets and would even consider buying foreign bonds to boost inflation through currency devaluation. However, they expect gold to rally in the face of increased central bank liquidity and rising inflation fears.
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On the stock market ,SPDR Gold Shares ( GLD ), tracking a 10th of an ounce of bullion, climbed 2% to 126.86. As usual the gold bulls and bears butted heads over whether Thursday's action marks the beginning of a new uptrend or just a dead-cat bounce in a long-term downtrend. He has put 5% to 8% of his clients' assets in metals and natural resources as a hedge against inflation that he believes will arise from central banks around the world printing money to stimulate their economies.
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Among the worst performers today were W.W. Grainger (NYSE: GWW) , Badger Meter (NYSE: BMI) , and Nektar Therapeutics (NASDAQ: NKTR) . The stock market bounced back on Tuesday, with investors focusing on strong economic data and favorable earnings reports from a wide variety of companies to create a generally optimistic view of the investing world. Inflation data showed a solid advance in prices, which is reassuring those who had feared that the prospect of deflation could give monetary policymakers no choice but to continue to leave rates at unusually low levels for the foreseeable future.
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Shares of PayPal (NASDAQ:) continued on their torrid run higher in late April after the digital payments provider delivered first quarter numbers that broadly underscored the company’s healthy long term growth narrative. Meanwhile, global retail sales are moving higher by a few percentage points every year given population growth, increased urbanization, and inflation. Consequently, as the commerce market grows at 15%-plus rate over the next several years, PayPal’s payment volume and revenues should rise at a similar 15%-plus pace.
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Nike (NYSE: NKE ) and Whirlpool (NYSE: WHR ) have done the same. If you own long-term bonds, such as 30-year U.S. Treasuries, you could see their prices fall dramatically as yields rise to keep pace with inflationary expectations. These funds buy pieces of loans made by major banks such as JP Morgan (NYSE: JPM ) to large corporate borrowers.
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On the other hand, if you don't care for all that leverage then just go with [[TBF]] which is the 1X version of what [[TBT]] is doing. (aka sovereign debt crisis) Quantitative Easing Part 2 (QE2) policies that have many critics and many potentially harmful unintended consequences like dollar devaluation, currency war, rampant inflation etc. Just make sure the holdings of the fund focuses more on the big money center banks and doesn't really include much in the way of insurance companies or credit card firms.
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iShares TIPS Bond ETF (NYSE: TIP ) Treasury inflation protected securities finished 2014 with a very understated return compared to investment grade corporate and traditional Treasury bonds. However, TIP has jumped out of the gate with a gain of over 3 percent in 2015 and is currently trading near its 52-week highs. Simply put, TIP is a play on pernicious inflationary pressures and may be viewed as a value-oriented area of the bond market compared to the high flying iShares 7-10 Year Treasury Bond ETF (NYSE: IEF ).
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Owning materials and agricultural ETFs, say the iShares S&P North American Natural Resources Sector Fund (NYSEArca:IGE) or the Market Vectors Agribusiness ETF (NYSEArca:MOO), makes a whole lot of sense too. When I talk about inflation, I'm not waiting for the CPI to print some scary high number or for bond yields to head through the ceiling, though that day may well arrive before long. To that extent, gold-related securities like State Street's SPDR Gold Shares (NYSEArca:GLD) are just one piece of preparing for the next big wave of rising commodities prices.
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Market Vectors Gold Miners ETF ( GDX ) blasted 9% to 26.02, snapping an eight-day losing streak.Market Vectors Junior Gold Miners ETF ( GDXJ ) also vaulted 9% to 40.75. As usual the gold bulls and bears butted heads over whether Thursday's action marks the beginning of a new uptrend or just a dead-cat bounce in a long-term downtrend. He has put 5% to 8% of his clients' assets in metals and natural resources as a hedge against inflation that he believes will arise from central banks around the world printing money to stimulate their economies.
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iShares TIPS Bond ETF (TIP ) Though inflation is currently low, some concerns have started to build up lately on rising food prices due to droughts in California, unusually cold weather in other parts of the country and specific commodity anxieties. As such, investors could definitely look to the ultra-safe Treasury Inflation-Protected Securities (TIPS) ETFs in order to protect against future inflation. This could be easily done by investing in TIP, which tracks the Barclays U.S.
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• Cinemark (CNK): This has been the worst summer box office season in 21 years, and shares of this movie theater chain are down 8.5% year-to-date to 3-year lows. The CEO believes this will be a big boon to CNK because he bought 5000 shares late last month. Retailers and technology were under pressure in the session, while a rise in consumer price inflation for August stoked fear that the Fed would raise rates sooner than expected.
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The numbers all the Auto companies put out a few weeks ago told a very different story, and in all likelihood, a more accurate one. Given the high level of operational leverage at an electric utility, this is a ad omen for their first quarter earnings. I think that barring a real meltdown over Europe, the higher core numbers, 0.4% for PPI and 0.2% for CPI have probably taken QE3 off the table.
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Donaldson Company, Inc.DCI has been struggling with the headwinds that have marred its operational performance over the past few quarters. Click to get this free report Tetra Tech, Inc. (TTEK): Free Stock Analysis Report Heritage-Crystal Clean, Inc. (HCCI): Free Stock Analysis Report Sharps Compliance Corp (SMED): Get Free Report Donaldson Company, Inc. (DCI): Free Stock Analysis Report To read this article on Zacks.com click here. Price inflation in some major raw materials, increased freight expenses as well as higher pension settlement disbursement primarily led to the rise.
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SA: You had indicated you were long [[GLD]] in 2010. SF: Gold ( GLD ) is becoming lofty in terms of its pricing but technicals remain strong for the long term. Because we expect inflation to start to gain momentum we are still long and have begun to look into ([[COPX]], [[GGGG]], [[GLDX]] and [[CU]]) I do not expect performance to continue at the unprecedented levels we have seen, but they should continue to be good hedges and outright positions within well-balanced portfolios.
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Late Thursday, Yellen indicated that the lift-off option is very much on the table later this year. A 9.6% weekly decline in Caterpillar Inc.'s CAT shares dragged down the Dow in negative territory for the week. Though a year-over-year gain of 0.3% in PCE index - an important indicator of inflation - indicated that the inflation rate is significantly below the Fed's target of 2%, a rise of 0.4% in consumer spending in August signaled toward rising demand.
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(See Graph) Chart Source: McKinsey Global Shanghai Composite Index has been up by 92.1% since 2000 outperforming almost all other major stock indices reflecting investors’ expectations for high future growth and returns. However, A separate McKinsey Global study calculates that based on the average return on equity (ROE), Chinese companies stocks are overvalued by 10-20%, and remain at a 20-30% premium above those in the United States and the European Union. The liberal lending and free capital post-financial-crisis has exacerbated inflationary pressure, created potential bubbles in housing, non-performing loans and assets, and widened the income inequality between regions.
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The ProShares Short 20+ Year Treasury ETF (NYSEARCA: TBF ) is a popular one with plenty of liquidity. Since then, an uptick in inflation has pushed that projected timeline forward by a full quarter; traders are saying there's an 87% chance the Fed will take its base interest rate up 25 basis points in December of this year. That proportion could ramp up significantly as U.S. buyers' money goes farther when it comes time to buy a new piece of electronic equipment or U.S. companies need to find some new technological components.
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For this reason, even if we call U.S. Treasury securities ( TLT ) "debt," they have very little in common with debt securities such as mortgages and corporate bonds. My view is that the U.S. government, regardless of whether Barack Obama or Mitt Romney is President in 2013, will continue to exhibit an inflationary bias, making investments that thrive in that environment more ideal. Homebuilders, real estate, and financial institutions might also be losers in one sense, since the mortgage tax deduction might get chopped in this proposal, but this might be partly offset by a general economic boost.
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Packaged foods maker General Mills, Inc. ( GIS ) on Wednesday saw its rating and price target boosted by analysts at Goldman Sachs. The analyst cited a rapid onset of inflation and higher promotional activity for the upgrade, and noted GIS should see some of the highest organic sales growth in the sector in 2011. The Bottom Line We have been recommending shares of General Mills ( GIS ) since July 30, 2009, when the stock was trading at $29.54.
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We issued an updated research report on OrangeORAN on Mar 31, 2015. Recently, the European Union's telecom regulatory authority delayed its antitrust probe into Orange's proposed acquisition of Spanish broadband and wireless operator Jazztel for the second time, owing to concerns over the telecom retail price inflation effect the deal will have in Spain. Going forward, Orange is likely to face stiff regulatory pressure in France, Belgium and other European markets.
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I got Outstanding Investment readers out of two of the large South African players, AngloGold Ashanti Ltd. (NYSE:AU; JSE:ANG; ASX:AGG; LSE:AGD) and Gold Fields Ltd. ( GFI ) . Byron King: Whether Obama remains in office or a Republican wins the election, it is going to be tough to deal with the inflation and the built-in spending that is driving gold prices up. He has been interviewed by dozens of major print and broadcast media outlets including The Financial Times, The Guardian, The Washington Post, MSN Money, Marketwatch.com, Fox Business News, and PBS Newshour.
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Now what: The jump in the stock seems strange, given the earnings miss and comparable sales drop. Investors seem to be encouraged by the share buybacks and reaffirming its guidance, but even the Brazil results shouldn't be interpreted as a sign of strength, given that inflation probably caused most of the improvement. A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology.
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In addition, the company is expected to face higher expenses due to the probable rise in inflation rate as well as the recent ratings and outlook downgrades by Moody's, a ratings arm of Moody's Corp. ( MCO ), S&P and Fitch Ratings. ICICI BANK LTD (IBN): Free Stock Analysis Report MOODYS CORP (MCO): Free Stock Analysis Report To read this article on Zacks.com click here. We have downgraded our long-term recommendation on ICICI Bank Ltd. ( IBN ) to 'Neutral' from 'Outperform' based on the recent ratings and outlook revisions.
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iShares S&P 500 ( IVV ): +0.78% PowerShares QQQ ( QQQ ): +0.78% iShares Russell 2000 ( IWM ): +0.81% iShares Russell 1000 Growth ( IWF ): +0.78% iShares MSCI Emerging Markets Index (EEM): -0.22% United States Oil Fund (USO): +0.54% SPDR Gold Shares (GLD): +0.72% Select Financial Sector SPDRS (XLF): +0.80% Pre-Market Movers Actively traded PowerShares QQQ ( QQQ ) was up 0.44%. Inflation data for March showed a 0.2% rise in consumer prices over the prior month, topping forecasts, and core CPI, which excludes food and energy costs, also rose 0.2%.
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Some of today's biggest winners included Public Storage ( PSA ), Caterpillar ( CAT ), and PNC Financial Services ( PNC ). This is a problem for conservative investors who have remained on the sidelines, deciding to keep their money in low interest rate savings accounts or CD's. Increasing one's exposure to quality dividend-paying stocks that have consistently raised their dividend payouts is one way to cushion one's investment portfolio to the crushing blow of inflation over time.
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The iShares 20+ Year Treasury Bond ETF (TLT) is trading more than 1% lower at $124. Tradeweb, an electronic bond-trading platform, has seen a 24 percent pickup in trading of inflation-protection securities globally after finding little interest in the prior two years, the firm said in a post earlier this week. The Thursday auction was less than a week after the government reported core consumer prices, excluding food and energy, rose only 0.1% in September, below expectations.
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iShares Barclays 20+ Year Treasury Bond ETF (NYSE: TLT ) If the sell-off in stocks continues it will likely lead to more money flowing into bonds and TLT. The concerns that shook investors included a Chicago PMI that fell by the most since 2008, several poor earnings reports, wage increase-spooked inflation fears, a major Portuguese bank exposed as on the verge of a major bailout, Argentina's default and a jobs number that was not as strong as the headline appeared. Combine that with a seemingly oversold RSI and the odds of the market bouncing back this week are high.
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Notable names include Archer Daniels Midland ( ADM ), Emerson Electric ( EMR ), Sirius XM ( SIRI ), Arch Coal (ACI), Gilead Sciences (GILD), HCA Holdings (HCA), and Buffalo Wild Wings (BWLD). The poor result is likely due to the extreme cold weather and does not signify a negative trend in manufacturing activity, yet it was still worrisome. Due to stronger-than-expected inflation data in January, it is expected that the central bank will temper its easing bias.
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TIPS Index (NYSEArca: STPZ ) SPDR Gold Shares (NYSEArca: GLD ) United States Oil Fund (NYSEArca: USO ) PowerShares DB Agriculture (NYSEArca: DBA ) For more stories about inflation, visit our inflation category . As recently as three months ago, investors were buzzing about inflation as a result of massive stimulus packages worldwide. Kurt Brouwer at MarketWatch notes that in PIMCO's Secular Outlook report, deflationary forces right now are strong and inflation lies farther down the road.
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Calafia Beach Pundit submits: With gold today hitting a new all-time high against the dollar, and the world fixated on how the euro is "plummeting," I thought a bit of perspective was in order. As this chart shows, the euro (as the extension to the DM) and the dollar have been moving pretty closely together relative to gold. If all major currencies are losing value relative to gold, that is a good sign that the world's supply of money exceeds the demand for it, and that is a necessary precursor to rising inflation.
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BHP Billiton Ltd. - ADRBHP Volatility in currency prices may have a significant impact on the company s financial results going ahead. BHP BILLITN LTD ( BHP ): Free Stock Analysis Report To read this article on Zacks.com click here. Moreover, an upsurge in oil prices and rising core inflation in the emerging markets may also prove detrimental to the company's growth.
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With recession looming in Argentina, the following ETFs face a tough time ahead: Global X MSCI Argentina ETFARGT It tracks the MSCI All Argentina 25/50 Index. Click to get this free report MercadoLibre, Inc. (MELI): Free Stock Analysis Report GLBL-X MS ARGEN (ARGT): ETF Research Reports Tenaris S.A. (TS): Free Stock Analysis Report ISHRS-MSCI ARG (AGT): ETF Research Reports To read this article on Zacks.com click here. The Central Bank of Argentina raised its key interest rate to 60% in an unscheduled meeting on Aug 30 to cope with the foreign exchange situation and risk of greater inflation.
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Strong labor market conditions, consumer confidence, and 3-year low mortgage rates have continued to provide support to the sector. With the Canadian economy performing well, a pickup in inflationary pressures and rise in retail sales would support the BoC’s latest outlook on policy, which remains Loonie positive. We can expect the Aussie Dollar to be particularly sensitive to the employment figures… On the monetary policy front, the RBA minutes due out on Tuesday will also get some attention.
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United States Oil Fund ( USO ): -0.5% VanEck Vectors Gold Miners ETF ( GDX ): -2% Broad Market Indicators Broad-market exchange-traded funds, including SPY, IWM and IVV continued to trade lower. Finally, the government reported a gain in the Atlanta Fed business inflation expectations to 2.0%, and the November housing market index to remain unchanged at 63. NETSOL Technologies (NTWK) rose 6.2% after it said it has set up a stock buyback program that authorizes repurchases of up to 0.5 million shares over the next six months.
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Notably, many other food companies like General Mills GIS , TreeHouse Foods THS and Campbell Soup CPB are battling input cost inflation. Click to get this free report Conagra Brands Inc. (CAG): Free Stock Analysis Report Campbell Soup Company (CPB): Free Stock Analysis Report TreeHouse Foods, Inc. (THS): Free Stock Analysis Report General Mills, Inc. (GIS): Free Stock Analysis Report To read this article on Zacks.com click here. Under this routine, the company ensures that robust volume performance is not driven by price discounts but by stronger innovation as well as new merchandising and distribution efforts.
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Chinese consumer price inflation surged to a 25-month high in October with a reading of 4.4 percent, well above the 3.6 percent increase a month earlier and the 3 percent target the government would like to achieve. The Global X China Materials ETF (NYSEArca:CHIM) and the Global X China Energy ETF (NYSEArca:CHIE) are ETFs to watch if this scenario plays out. For those interested in hedge-fund replication strategies, a number of ETFs are on the market to help calm investors’ nerves and lower daily price swings.
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Factors Pouring in American Inflation The jobs' report for May mirrored a tightening labor market scenario in Trump land, with unemployment sinking to 3.8%, its lowest level since the dot-com roar of the early 2000. Yesterday's Labor Department report revealed that U.S. consumer prices in May had logged its biggest gain in the last six years . The U.S. economy is at its full employment level and a stretched workforce market will eventually push up inflation; as employers are trying to brave labor shortages with higher wages.
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The SPDR Gold Trust ( GLD ) posted a new 52-wk high this morning of 157.80. Rising inflation in emerging economies and stress to the Global financial system caused by both the EuroZone sovereign risk issues and the US debt ceiling impasse have combined to drive the Gold price to record higs. One of the World largest silver miners, Peru's Compania de Minas Buenaventura SA (BVN) reports earnings Wednesday, and analysts are expecting EPS of 0.91 on revenue of US$374M.
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Market Vectors Gold Miners ( GDX ) is down 0.16% to $61.21. Stocks are solidly lower at mid-day as investors react to a disappointing outlook from Cisco Systems ( CSCO ), renewed concerns over sovereign debt in Europe, which is pushing the dollar higher, and warning signs out of China about inflation. Investors are also eying the Group of 20 Summit in South Korea where world leaders are trying to develop plans to bolster a generally weaker global economy amid allegations of currency manipulation and widening trade gaps.
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In addition, the company is expected to face higher expenses due to the probable rise in inflation rate as well as the recent ratings and outlook downgrades by Moody's, a ratings arm of Moody's Corp. ( MCO ), S&P and Fitch Ratings. ICICI BANK LTD (IBN): Free Stock Analysis Report MOODYS CORP (MCO): Free Stock Analysis Report To read this article on Zacks.com click here. We maintain our long-term 'Neutral' recommendation on ICICI Bank Ltd. ( IBN ), reflecting its stable fiscal first quarter (ended June 30) performance, which recorded a remarkable 36% year-over-year rise.
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SPDR S&P Internet ETF (NYSEARCA: XWEB ) This product targets the Internet corner of the broad tech space with an equal-weight exposure. Source: Shutterstock Now the remarks from the Fed Chairman Jerome Powell in its first testimony to Congress revived fears of more interest rate increases this year leading to another bloodbath in the stock market. Powell showed enough confidence in the economic and inflation outlook, signaling that the Fed could accelerate its pace of monetary tightening with four interest rate hikes this year rather than the three penciled in to keep the economy from overheating.
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Until that happens, we can likely expect prescription drug costs to handily outpace the rate of inflation, and for drugmakers like AbbVie, Amgen, Teva, and AstraZeneca to keep raking in the dough. It also recommends Teva Pharmaceutical Industries. Last year, the so-called "Bad Boy of Pharma," Martin Shkreli, attempted to raise the price of an acquired therapeutic known as Daraprim by more roughly 5,500% without changing the formulation or manufacturing process one iota.
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But TIPS stand out from most bonds because rather than having a fixed face value, the amount you get back at maturity rises and falls alongside changes in consumer prices. Inflation crushed bond-market investors, as low-interest rate bonds issued before the crisis suddenly couldn't keep up with the erosion in purchasing power. Using the CPI, TIPS incorporate changes in prices in the interest and principal payments they make, thereby allowing investors to get an offsetting benefit when the cost of things like food, housing, cars, and clothing rise.
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We expect the average price to keep rising given the growing industrial demand for silver as well as on fears of inflation. Fears of Inflation The continued easy monetary policy adopted in response to the economic crisis has led many to believe that this could result in high inflation as growth takes hold. While we estimate Silver Wheaton's average price for silver (per ounce) will rise closer to $50 by the end of our forecast period, Trefis members predict it to reach higher at $57.
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That improvement recently pushed prices to a two-year high of $63 for the global benchmark (Brent) and $57 for the U.S. oil benchmark (WTI). In fact, demand was remarkably strong in the second quarter, increasing by 2.2 million barrels per day (BPD) versus the year-ago period. Several factors are driving this decline, including warmer winter weather and the more than 20% recovery in crude, which will push gasoline prices higher and curb some demand.
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However, Barrick is moving past those overzealous times and is again focusing on its core mission of running cheap gold mines well. You can't hold the gold in your hand, but this is a pretty convenient way to quickly get some protection from the ravages of inflation. You can't predict the future, of course, but one thing has been pretty constant through history -- a dollar today will buy less tomorrow.
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As of January 23, the Fed's balance sheet climbed by $48 billion to $3.01 trillion, according to a release from the central bank Thursday from its Washington headquarters. The recent moves by the Fed are being called the most revolutionary policy measures taken by the central bank since its inception, potentially second only to Paul Volcker in the 1970's. Volcker, the Fed Chairman from 1979 to 1987, raised interest rates as high as 22 percent during his tenure to end the stagflation that plagued the era and cool inflation.
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Jim Kopas submits: Our research indicates the strengthening U.S. economy has recovered to the point when interest rates will begin to move up (bond prices go down) for the duration of the current business cycle expansion. If, as we expect, the secular trends for interest rates are reversing, investors will have to struggle with longer adverse periods of falling bond prices than experienced in the last three decades. A tactic that increases exposure to inflation sensitive investments could include short-term international bonds emphasizing currencies denominated in strong natural resource based countries, such as Canada or Australia.
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Losses for the Dow were also buoyed by a decline in the shares of Boeing BA and Caterpillar CAT , which fell 3.1% and 3.5%, respectively. Powell Indicates More Rate Hikes Markets declined to session lows in the afternoon after Fed Chairman Jerome Powell stated that the U.S. Central Bank will likely continue increasing interest rates in order to keep inflation under control. Markets gained traction after White House gave an indication that the U.S. government would not want to enter into a trade war with China.
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Among very few changes made in Fed statements, adjustments in inflation expectations from the prior statements call for a look at TIPS ETFs that offer robust real returns during inflationary periods, unlike its unprotected peers in the fixed-income world. Party Time for TIPS ETFs These TIPS securities pay an interest on an inflated-principal amount (principal rises with inflation) and when the securities mature, investors get either the inflation-adjusted principal or the original principal, whichever is greater. This mechanism has recently made TIPS ETFs investors' darlings as they are increasingly wagering on these inflation-protected bond ETFs.
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He recommends buyingSPDR Barclays Capital Short-Term High Yield Bond ETF ( SJNK ). The market faces "an impending rise in interest rates" as the economy improves and inflation heats up in 2014, says Jason Schenker, president of Austin-based Prestige Economics. Timothy Evans, chief market strategist at Long Leaf Trading Group in Chicago, favorsPowerShares DB U.S. Dollar Index Bullish (UUP).
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Gap's ( GPS ) operates its namesake Gap brand in addition to Old Navy and Banana Republic, and competes with other specialty retailers like Aeropostale ( ARO ), American Eagle ( AEO ), Abercrombie & Fitch ( ANF ) and Urban Outfitters ( URBN ). The consumer price index (a measure of inflation) increased by 0.5% in February, the highest for any month in nearly two years and above analyst forecasts. The inflationary pressure affects profit margins of retailers like Gap that face increasing raw material costs, with global cotton prices rising over the last year.
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The gap between inflation expectations and inflation targets as defined by intermarket analysis is fairly large now, which continues to mean that something's gotta give. Emerging markets remain the next fat pitch for us, and some strength does appear to be kicking in. This is an issue worth paying attention too as large buybacks in particular tend to occur at/near market peaks for a simple reason -- companies tend to have 'too much' cash when things are peaking and confidence in the future is at extremely high levels.
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Each of these funds will offer some degree of protection, but I give the edge to Western/Claymore Inflation Linked Opportunities (NYSE: WIW ). WIW is an actively-managed closed-end fund that has been in operation for over a decade. The core thrust of their argument goes something like this... Trump's tax cuts and fiscal stimulus spending will unleash economic growth, which tends to push prices higher.
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With capital inexpensively available to invest, the stock market aggressively rallied following previous major crashes and gave an early warning of the inflating bubbles to come. At the moment few asset classes and business proposals currently pass the tests of risk management and the loan approval departments of banks and venture funds. Chosen correctly, high yielding investment property is a great way to keep up with inflation and provide a steady stream of income for retirees to spend.
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A bubble in the Biotech index (NYSE: [[IBB]]) will inevitably burst. The strategy involves Valeant borrowing money at its own blended cost of capital to invest in drug assets that will likely provide higher returns due to future expected price inflation. It is a "heads I win, tail I don't lose" investment and allows PM Michael Pearson to comfortably take on significant leverage to drive home one of the greatest trade since subprime, that is until Martin Shkreli pooped the party.
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Among the worst performers today were W.W. Grainger (NYSE: GWW) , Badger Meter (NYSE: BMI) , and Nektar Therapeutics (NASDAQ: NKTR) . The stock market bounced back on Tuesday, with investors focusing on strong economic data and favorable earnings reports from a wide variety of companies to create a generally optimistic view of the investing world. Inflation data showed a solid advance in prices, which is reassuring those who had feared that the prospect of deflation could give monetary policymakers no choice but to continue to leave rates at unusually low levels for the foreseeable future.
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The restaurant industry has been extremely competitive recently, but one thing that steakhouse restaurant specialist Texas Roadhouse (NASDAQ: TXRH) has been able to do is to produce impressive growth. Restaurant margin fell almost half a percentage point to 17.1%, and Texas Roadhouse blamed wage inflation, higher payroll tax costs, gift card fees, and insurance reserve adjustments for the boost in expenses. For the most part, though, the company left its initial guidance from last quarter unchanged, including calls for positive comparable restaurant sales growth and labor inflation in the mid-single digit percentage range.
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CRA International Inc. CRAI It is an economics, finance, and business consulting firm that works with businesses, law firms, accounting firms, and governments in providing a wide range of services. (CRAI): Free Stock Analysis Report Patrick Industries, Inc. (PATK): Free Stock Analysis Report To read this article on Zacks.com click here. This is because global trade worries, threats of inflation, concerns over speedy tightening of monetary policy, and the ongoing political turmoil in Washington continued to provide resistance.
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Nonetheless, Mr. Bernanke understands that inflation pressures remain very low (even though he has failed to apply or promote the proper solution to our current balance sheet recession). But I believe gold prices are moving higher due to the public's opposition to fiat currency, fiscal stimulus and what is generally viewed as continued "money printing". It has caused the increasing rally cry for reduced government spending and continued shrieking from deficit hawks who haven't differentiated between the currency system in the EMU and in most other developed nations.
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It's true that financial firms are in a better position than they've been in a while, both because of Donald Trump's inflationary policies (think infrastructure spending and trade protectionism) and a looming rate hike from the Federal Reserve. Expansion Plan Falls Flat Like BAC, Citigroup's revenue is sliding, which will pressure the bank's dividend if it can't widen margins at its current operations. Visa has done an excellent job, and its massive network, which spans more than 200 countries, gives it what Warren Buffett calls an "economic moat"-an edge that's hard for competitors to match.
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Toyota ( TM ) In fact, its latest quarterly profits were blowout positive, as fourth-quarternet profit doubled to more than $3 billion. Prime Minister Shinzo Abe's aggressive monetary policies, known as "Abenomics," are starting to work their magic on theeconomy , creating an opportunity for forward-thinkingstock investors. Abe's policy of weakening the yen, major fiscal spending and generating 2%inflation by 2014 has sent the Japanese stock markets soaring higher.
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However, rising costs mostly due to inflation in the prices of steel and aluminum, as well as the cyclical nature of the business and customer concentration risks, might be detrimental. Regal Beloit CorporationRBC has announced that it successfully completed the divestiture of its highly engineered drives and control systems business (Regal Drive Technologies) on Jan 7. The financial terms of the deal have not been disclosed.
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The company is already burdened with increased health care costs due to medical cost inflation and increased health care enrollments in the U.S. Currency is also expected to hurt profitability in the to-be reported quarter. Wal-Mart expects U.S. comp sales growth of around 1% for the 13-week period ending Jul 31 as against relatively flat comps last year. Sam's Club comp sales, without the impact of fuel sales, are expected to be flat to up 2% as against flat comps last year.
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Finally, Kohl's Corp. ( KSS ) reported that its third-quarter profit rose to $194 million, or 63 cents per share, from $193 million, or 63 cents per share, in the year-ago period. The Dow Jones Industrial Average (DJIA) may have been saved by a late-session buying spree on Wednesday, but market bears are poised to take the reins once again this morning. In Asia, Chinese economic data revealed that consumer price inflation rose at its fastest clip in two years, while industrial output growth came in weaker than expected.
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In fact, many other food companies like Campbell Soup CPB , Lamb Weston LW and General Mills GIS are also battling input cost inflation. Click to get this free report Campbell Soup Company (CPB): Free Stock Analysis Report TreeHouse Foods, Inc. (THS): Free Stock Analysis Report General Mills, Inc. (GIS): Free Stock Analysis Report Lamb Weston Holdings Inc. (LW): Free Stock Analysis Report To read this article on Zacks.com click here. TreeHouse 2020 aims to improve the company's operating margin by 300 basis points (bps) by the end of 2020, by undertaking complete business integration and expense reduction.
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Expected movers: - AmTrust ( AFSI ): says ISS urges support for amended buyout agreement with Evergreen parent - WP Carey ( WPC ): company and Borghese Logistics agree to expand Netherlands logistics facility The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Financial shares were mixed in pre-market trading on Tuesday. Morgan Stanley expects core CPI at 0.19% with energy up 0.8% on rising retail gas prices while food prices are expected to rise 0.15%.
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We touched Turkey yesterday on Trading the Globe -- and right here -- so we should follow up on the call. In fact, the looming Turkish central bank meeting has some concerned that there may be more measures on the horizon to tame inflation and the current account deficit. Will he pound his fist on the table and push now for actual rate hikes in addition to reserve moves?
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Market Statistics Equity option activity on the Chicago Board Options Exchange ( CBOE ) saw 827,256 call contracts traded on Wednesday, compared to 917,156 put contracts. Specifically, disappointing economic data from home and continued concerns about the Greek debt situation resulted in a triple-digit loss for the Dow Jones Industrial Average (DJIA ) on Wednesday. The combination of weak manufacturing data and rising inflation sparked worries about the state of the U.S. recovery, while talk of a revamped Greek government added fresh uncertainty to the prospect of a bailout for the cash-strapped country.
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With capital inexpensively available to invest, the stock market aggressively rallied following previous major crashes and gave an early warning of the inflating bubbles to come. At the moment few asset classes and business proposals currently pass the tests of risk management and the loan approval departments of banks and venture funds. Chosen correctly, high yielding investment property is a great way to keep up with inflation and provide a steady stream of income for retirees to spend.
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Giants like Woori ( WF , quote ) are already helping out in the bailout process, grabbing $44 million in bonds from failed banks and pondering outright absorption of at least one of them. As it is, the government is still allocating about 20 trillion won ( quote ) -- roughly $20 billion -- to fund the process of restructuring the country's apparently failure-ridden banking sector . Meanwhile, inflation pressures are reportedly becoming an outright "threat" to finance minister Yoon, so more interest rate hikes are likely to be in the cards.
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The iShares MSCI All Peru Capped ETF (NYSEArca:EPU) will give investors exposure to a high-growth South American country that has a heavy reliance on commodity prices. The broad array of single-country ETFs now on the market make this challenge easy to meet for investors looking to buy on the dip in rapidly expanding countries such as India. This move is in response to rising commodity prices, which has led to fears of inflation in the booming nation, which surpassed Japan last year as the world's second-biggest economy.
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On the London Exchange, the big gainers of the day were Inmarsat ( ISAT ), Old Mutual (OML) and Tesco ( TSCO ), which ended Friday's session up 5.2%, 5.2% and 4.3% respectively. European markets ended Friday with gains as the Bank of Japan surprised investors by deciding to introduce negative interest rates in an attempt to spur inflation. Reports coming out of the U.K. Friday show at that total exports of services (excluding travel, transport and banking) in current prices rose 2.1% between 2013 and 2014.
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Barrick is still going through a management shake-up begun earlier this year when former Goldman Sachs president John Thornton replaced long-time chairman Peter Munk, the company's founder. Analysts generally don't expect a big rally in gold prices until the labor market tightens enough to drive wages up and send inflation a lot higher. Gold prices jumped July 17 after a missile shot down a Malaysian passenger jet over Ukraine.
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April crude oil rose 2 cents to $82.11 a barrel, and the Energy Select Sector SPDR ( XLE ) fell 10 cents to $58.47. Now data confirms that prices for February spiked sharply and that an even tighter monetary policy may be required in order to keep inflation under control. In the absence of heavy volume, the Dow could double-top and head back down to the initial support line represented by the 20- and 50-day moving averages at 10,380 to 10,390.
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Stocks closed lower on Friday as inflation data coupled with comments from Fed Chair Janet Yellen continued to indicate higher U.S. rates this fall. Led by losses in component stocks Boeing ( BA ) and Microsoft ( MSFT ) the Dow Jones Industrial Average underperformed the other benchmarks and closed the week lower by just 40 points. Mostly upbeat corporate earnings from John Deere ( DE ) and Hewlett Packard ( HPQ ) also contributed to the firmer tone before equities surrendered their minimal gains after the CPI data.
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The iShares MSCI Germany Index Fund (NYSEARCA:EWG) is up 0.6% while the iShares MSCI Thailand Investable Market Index Fund (NYSEARCA:THD) is down 5.5%. Global X FTSE Argentina 20 ETF (NYSEARCA:ARGT) Argentine President Cristina Fernandez de Kirchner is arguably to blame for much of her country's economic woes such as slowing growth, soaring inflation and an albeit diminished flirtation with a second sovereign debt default this century. Japanese Prime Minister Shinzo Abe and Federal Reserve Chairman Ben Bernanke are men and guess what the two biggest risks to South Korea's economy are.
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AptarGroup, Inc.ATR recently announced that the company will implement a price hike by 5-10% for its beauty, personal care and home care products in North America. Click to get this free report Mobile Mini, Inc. (MINI): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Flowserve Corporation (FLS): Free Stock Analysis Report CECO Environmental Corp. (CECE): Free Stock Analysis Report To read this article on Zacks.com click here. The price hike, which will be effective with shipments beginning on Jan 1, 2019, has been implemented to counter significant cost inflation on raw materials, freight and other inputs.
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The combination of rising inflation and low interest rates continues to make gold — and proxies like the SPDR Gold Trust ETF ( The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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I also suggest looking at Vanguard FTSE Europe ETF ( VGK ), which is currently yielding 3.5% annually. The committee made a unanimous vote to increase the Fed's main interest rate by a quarter-point, to the 0.25% to 0.50% range from the previous 0.00% to 0.25%. The new administration is expected to put policies in place that will increase inflation, which in turn pushes bond yields higher.
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