Tuesday, December 15, 2009

Quick Notes for the Day - December 15

PPI Rises 1.8% in November - The Labor Department reported that the Producer Price Index (PPI) rose 1.8% in November with the vast majority of the increase coming from energy prices. This new data marks the first rise in the PPI since November 2008. The core PPI (excludes food and energy prices) rose 0.5% in November. Year over year, the PPI is up 2.4%, and the core PPI is up 1.2%.

Oil Rallies - Oil rallied, although only slightly, after OPEC announced that it was increasing the estimate of demand for oil in 2010. Oil has had nine straight down days previously which is the worst run since 2001.

Industrial Production Rises - The Federal Reserve reported that industrial production from factories, mines and utilities rose 0.8% in November. Manufacturing activity alone jumped 1.1% after falling 0.2% in October. Industrial production was revised down to no change in October from the prior estimate of a 0.1% gain. Capacity utilization rose to 71.3% in November from 70.6% in October.

Wells Fargo Sells $10.65 Billion Shares to Exit TARP - By Elinor Comlay - Reuters - "Wells Fargo & Co sold $10.65 billion in stock on Tuesday, raising funds to help repay a $25 billion bailout received from the U.S. government last year. Wells Fargo and Citigroup -- which expects to raise $20 billion on Wednesday to help repay its bailout money -- were the last of the largest banks to repay the funds, which were forced on banks amid the height of the financial crisis last year."

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