Matt Rourke/AP WASHINGTON -- The cost of producing goods and services in the United States rose slightly in January, with higher food prices partly offset by cheaper gas. Overall, inflation remains mild. The Labor Department said Wednesday that the producer price index, which tracks prices before they reach consumers, rose 0.2 percent in January. That followed a 0.1 percent increase in December and a flat reading in November. In the past year, producer prices have risen just 1.2 percent, below the Federal Reserve's preferred target rate. Excluding the cost of food, energy and markups by wholesalers and retailers, so-called core prices ticked up just 0.1 percent. Producer prices remain "rather modest, a sign that underlying inflationary pressures are very modest," Annalisa Piazza, an analyst at Newedge Strategy, said in a note to clients. January's producer prices are the first to be compiled since the government revamped its index to make it more comprehensive. Producer prices now include services and construction. Before last month, the index tracked only goods. That change has doubled the producer price index's coverage to include 75 percent of the economy. It is the government's first revamp of the index in 35 years. Inflation has declined in the past two years, posing a challenge for Fed policymakers. During 2013, the producer price index rose just 1.1 percent after rising 1.4 percent in 2012. Both figures are far below the Fed's 2 percent target. Businesses have struggled to raise prices because of a tight job market and meager wage growth. Consumers have found it hard to pay more or demand higher wages. Low inflation has enabled the Fed to pursue extraordinary stimulus programs to try to boost economic growth. The Fed is now trying to unwind some of that stimulus. It cut its monthly bond purchases to $65 billion this month, from $75 billion in January and $85 billion last year. The bond purchases are intended to keep long-term interest rates low to encourage borrowing and spending. But Fed policymakers have expressed concern about the persistence of low inflation. If inflation remains below its target, the Fed could extend its stimulus efforts.
Top Defensive Stocks To Own For 2015: Cloud Peak Energy Inc(CLD)
Cloud Peak Energy Inc., through its subsidiaries, engages in coal mining operations in the Powder River Basin of the United States. It produces sub-bituminous steam coal with low sulfur content for electric utilities and industrial customers. The company owns and operates Antelope surface coal mine located to the south of Gillette, Wyoming; the Cordero Rojo surface coal mine located to the south of Gillette, Wyoming; and the Spring Creek surface coal mine located in Montana. It also owns a 50% interest in the Decker surface coal mine located in Montana. As of December 31, 2010, it had approximately 970 million tons of proven and probable reserves. The company was founded in 1993 and is headquartered in Gillette, Wyoming.
Advisors' Opinion:- [By Joshua Bondy]
Not all coal is the same. Utilities can buy relatively clean, low-sulfur Powder River Basin coal from�Cloud Peak Energy (NYSE: CLD ) , or stick to more traditional dirty sources. �China and the U.S. are tiring of highly polluting coal, and Cloud Peak Energy is a critical part of the solution.
Top Cheap Companies To Invest In Right Now: The Travelers Companies Inc.(TRV)
The Travelers Companies, Inc., through its subsidiaries, provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States. The company operates in three segments: Business Insurance; Financial, Professional, and International Insurance; and Personal Insurance. The Business Insurance segment offers property and casualty products and services, such as commercial multi-peril, property, general liability, commercial auto, and workers? compensation insurance. It operates in six groups: Select Accounts, which serves small businesses; Commercial Accounts that serves mid-sized businesses; National Accounts, which serves large companies; Industry-Focused Underwriting that serves targeted industries; Target Risk Underwriting, which serves commercial businesses requiring specialized product underwriting, claims handling, and risk management services; and Special ized Distribution that offers products to customers through licensed wholesale, general, and program agents. The Financial, Professional, and International Insurance segment provides surety and financial liability coverage, which uses a credit-based underwriting process; and property and casualty products primarily in the United States., the United Kingdom, Ireland, and Canada. The Personal Insurance segment offers property and casualty insurance covering personal risks, primarily automobile and homeowners insurance to individuals. It distributes its products through independent agents, sponsoring organizations, joint marketing arrangements with other insurers, and direct marketing. The company was founded in 1853 and is based in New York, New York.
Advisors' Opinion:- [By Dan Caplinger]
On Tuesday, Travelers (NYSE: TRV ) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever surprises inevitably arise. That way, you'll be less likely to have an uninformed, knee-jerk reaction that turns out to be exactly the wrong move.
- [By John Maxfield]
On the individual stock front, shares of Travelers Companies (NYSE: TRV ) are leading the Dow higher this afternoon, up by 2.3% at the time of writing. Given that it's an insurance company, the fact that the jobs report wasn't outright awful probably has a lot to do with Travelers' ascent today. The better the economy is doing, the sooner long-term interest rates will increase. And the sooner long-term rates increase, the sooner Travelers' bottom line will pick up to full steam.
Top Cheap Companies To Invest In Right Now: USG Corporation(USG)
USG Corporation, through its subsidiaries, engages in the manufacture and distribution of building materials worldwide. The company offers gypsum and related products, including gypsum wallboard, joint compounds used for finishing wallboard joints, cement boards, glass mat sheathing, gypsum fiber panels, poured gypsum underlayments, ultra light panels, and various construction plaster products. Its gypsum products are used in various building applications to finish the interior walls, ceilings, and floors in residential, commercial, and institutional constructions, and repair and remodel constructions. The company also produces gypsum-based products for agricultural and industrial customers to use in various applications, including soil conditioning, road repair, fireproofing, and ceramics. In addition, it manufactures ceiling grid and acoustical ceiling tile for electrical and mechanical systems, and air distribution and maintenance applications. USG Corporation distribut es its gypsum products through specialty wallboard distributors, building materials dealers, home improvement centers and other retailers, contractors, and a network of distributors. Further, it distributes other manufacturers? gypsum wallboard, joint compound and other gypsum products, as well as drywall metal, insulation, and roofing products and accessories. The company sells its products under SHEETROCK, DUROCK, FIBEROCK, SECUROCK, LEVELROCK, RED TOP, IMPERIAL, DIAMOND, SUPREMO, AURATONE, ACOUSTONE, DONN, DX, FINELINE, CENTRICITEE, CURVATURA, and COMPASSO brands. The company was founded in 1901 and is based in Chicago, Illinois.
Advisors' Opinion:- [By Matt Jarzemsky]
While economists attributed some of the downtick to cold and snowy weather, some are wondering if the Federal Reserve�� plan to dial back its stimulus program this year could lead to a rise in interest rates, putting the brakes on the housing recovery. The SPDR S&P Homebuilders exchange-traded fund��hich tracks a broad basket of housing-related stocks from builders to Sheetrock maker USG Corp.(USG)��s down about 3.6% year-to-date.
- [By Holly LaFon]
Pimco managing director Mark Kiesel mentions Whirlpool (WHR), Weyerhaeuser (WY), USG (USG), Toll Brothers (TOLL) and KB Home (KBH) as good plays on housing:�
- [By Seth Jayson]
USG (NYSE: USG ) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), USG missed estimates on revenues and missed estimates on earnings per share. - [By Eric Volkman]
She also serves as chairman of the United States Steel and Carnegie Pension Fund, and on that organization's investment committee. Outside of U.S. Steel, she sits on the board of directors of USG (NYSE: USG ) and the Pennsylvania Business Council, among other entities.
Top Cheap Companies To Invest In Right Now: Kohl's Corporation(KSS)
Kohl?s Corporation operates department stores in the United States. The company?s stores offer private and exclusive, as well as national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares primarily to middle-income customers. As of January 29, 2011, it operated 1,089 stores in 49 states. The company also offers on-line shopping on its Web site at Kohls.com. Kohl?s Corporation was founded in 1962 and is headquartered in Menomonee Falls, Wisconsin.
Advisors' Opinion:- [By Paul Ausick]
Big Earnings Movers: Cisco Systems Inc. (NASDAQ: CSCO) is down 11% at $21.35 after putting up weak revenues last night. Wal-Mart Stores Inc. (NYSE: WMT) is up 0.2% at $79.09 and Kohl�� Corp. (NYSE: KSS) is down 8.1% at $53.56 on so-so earnings and weak forecasts.
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