And that's all still in place. If anything, those efforts will now be redoubled. Ms. Cahn says as inflation drops, it's natural that more and more individual items will actually have price drops. But that doesn't necessarily bring deflation . Christine Callies, stock strategist at CSFB, also doubts that the historic pattern of bull markets ending with rising inflation and interest rates is about to change.
Profit margins change slowly over time, particularly in an extended business cycle.
Still, with pricing pressure in abundance, Mr. Slayton says investors should go after companies that can raise prices. Among his favorites are oil-field service stocks, airlines and upscale hotels. It marked the fourth time in the past two weeks the average posted a three-digit loss for a session, and the 11th time since the market reached its current high of 8259.31 on Aug. 6. The company conducted its semiannual meeting with analysts, at which it stuck to its previous outlook for fourth-quarter results. Starwood Lodging Trust confirmed that it sweetened its bid for the hotel and gaming concern, the latest move in the takeover battle.