Stocks do Better than Expected

[kst$]

Having some of the retailers not passing on alot of the rising costs that they are induring has helped. By them not raising prices through the roof as they could have done to make their numbers look better.

AP
Posted: 2008-05-14 11:48:48
NEW YORK (AP) - Stocks steamed higher Wednesday after a better-than-expected report on consumer prices tempered some of Wall Street's concerns about inflation. The Dow Jones industrial average rose more than 100 points.

The Labor Department's report that consumer prices advanced 0.2 percent in April after rising 0.3 percent in March appeared to alleviate Wall Street's worries about a big spike in prices due to the recent surge in energy costs. The decline in prices comes despite the largest jump in food prices in 18 years.

Wall Street has been concerned that higher food and energy costs are cutting into consumers' ability to spend. Any pullback is an unnerving prospect for investors because consumer spending accounts for about two-thirds of U.S. economic activity.

Stocks advance following better-than-expected inflation read

By TIM PARADIS,

I think that this is also saving us from going into a deep recession. With all of us facing higher cost in food and energy this is definatly welcome news to the stock exchange and to the consumer.