NOTHING COSTS MORE THAN IT USED TO:

Dow nears trading high on inflation data (TIM PARADIS, 6/15/07, AP)

Wall Street barreled higher again Friday after the week's most anticipated economic reading indicated that inflation excluding the price of gas remained tepid last month, easing some concerns that have jolted stock and bond markets in recent sessions.

The Dow Jones industrial average — which has surged more than 340 points over the last three days, the biggest three-day point gain since November 2004 — is now less than 40 points below its record close reached on June 4.

Friday's consumer price index showed prices rose at the fastest pace in 20 months in May as the cost of gas jumped. However, the core CPI, which excludes often volatile food and energy prices, rose a lower-than-expected 0.1 percent. The figure, which the inflation-wary Federal Reserve watches closely, was below the 0.2 percent increase Wall Street expected.

How do you maintain that sense of suprise for 25 years?

Posted by Orrin Judd at June 15, 2007 3:44 PM