2011/01/31

Afternoon: earnings and economic data pushed U.S. stocks

Today morning the news of Intel's stock was suspended from trading stocks to go so soft. The chip giant reported that chipset design defects, thereby reducing the expected revenue to $ 300,000,000.

But economic data released today encouraging and promoting a stronger U.S. stocks. By rising incomes and lower prices, fueled the increase in December U.S. consumer spending, weak economic recovery in the U.S. have the necessary impetus. 12 about 0.7% growth in consumer spending, personal income for the fourth consecutive month growth rate of 0.4%. Economists on average had expected personal spending to grow 0.5%, personal income rose 0.4%.

The data also show that the U.S. inflation rate is still below the Fed's price stability target recognition range. December's core personal consumption expenditure price index rose 0.7%, 11 month growth rate of 0.8%. The Fed's target range for core CPI 1.5% to 2%.

U.S. stocks opened, the U.S. Institute for Supply Management (ISM) Chicago branch, announced in January the Chicago purchasing managers index (PMI) was 68.8, the highest since July 1988 a new high. According to Bloomberg News survey of economists forecast an average 65.0 points. December last year, the Chicago PMI to 66.8 points (correction value).