Zacks_Analysts' Blog : CPI In-Line, But Does the Market Care? - Analyst Blog

The November Consumer Price Index (CPI) was just released, and the results were unchanged. According to the Bureau of Labor Statistics (BLS), all items were up 3.4% over the past 12 months. Stripping out volatile food and energy readings, the number is up 0.2%. Last month, the reading was 3.5%. The core reading year over year was 2.1%, but that is up a tick to 2.2%.

According to the survey, consumers spent 41% of their money on housing, 13.7% on food, 9% on energy and 6.6% on medical care.

When the Producer Price Index (PPI) was released yesterday, the numbers were reversed -- slightly hotter on the headline but cooler on the core. Basically, both of these readings are unchanged. Question is: Does anybody care?

With anticipation high about a resolution to come from the European Union in addition to some question marks regarding the ongoing U.S. holiday season, it seems the market may have bigger fish to fry.

In other news, "Farmville" creator Zynga, Inc. (ZNGA) went public yesterday after the bell. At an IPO of $10 per share, the company putup 100 million shares for sale. As always with an IPO, it's tough to get an accurate reading right away, but an early reading indicates the stock is up 3.4% in the pre-market Friday.

Elsewhere, Research In Motion (RIMM) lowered its guidance on fourth quarter revenues. RIMM stock dropped nearly 10% yesterday on the news. Also after the bell yesterday, Adobe Systems (ADBE) beat consensus EPS estimates.