Moenning�s Daily State of the Markets: 10/06

Things Don't Matter Until They Do

The stock market is suddenly fixated on inflation and the obvious question is: Why all of a sudden are trades worried about inflation? Because the Fed is telling us to worry about inflation. Every day this week we�ve heard a different Fed Governor suggest we should worry about inflation. So traders fear the Fed has changed its tune and will forget about the goal of returning to neutral and just keep raising rates. The ISM Non-Manufacturing report showed services sector hit a brick wall after hurricanes and the Prices Paid Index rose to an all-time record. But bonds have barely budged on this talk about inflation - which is something to watch in coming sessions. After plunging -124 yesterday, the mood seems to have improved this morning. Oil is continuing to pull back and futures are pointing higher.

Stocks In Play This Morning:
INTC � Showcasing new processor at developer forum in Russia.
COST � Beat Street by $0.02 and doubled buy-back program
CLE � Reported same-store sales rose by 8% and boosted earnings guidance
CVX and BP � Bernstein downgrades Integrated Oils
GOOG � Launches Google Local and Google Maps

To see Mr. Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI

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