Traders-Blog.com

Today was a day of recovery for the market because U.S. consumer prices increased 0.1 percent, easing concerns about inflation. The Dow rose 62.59 points to close at 10,673.79. Besides, both the Nasdaq and the S&P rose today. The Nasdaq rose 0.92 points to close at 2,031.25, while the S&P closed at 1,190.80 after rising 6.64 points.

The stocks are rising primarily because of a new report on consumer price indexes. The positive report on consumer inflation helped U.S. stocks to recover today. However, technology stocks lagged due to a decline of 1.9 percent for Intel Corp.

Martha Stewart Living posted fourth quarter loss of $7.3 million or 15 cents a share compared with earnings of $2.4 million, or 5 cents a share last year. Nevertheless, the company reported positive trends in its publishing division, such as with its highly popular Everyday Food magazine. This magazine saw its base rate circulation rise to 800,000 for the January issue from 500,000 issues at its September 2003 inception. Besides, after Martha Stewart is released from prison on March 6, she will start working on two television shows, such as her syndicated, daytime program and NBC’s Martha Stewart-version of Donald Trump’s “The Apprentice”.

Today, Apple introduced two new Ipod models and dropped the price of its two older models. The new models are a six-gigabyte Ipod mini and a 30-gigabyte Ipod photo. Apple is offering the two models for about $250 and $350, respectively. These two new models and discount of prices reflect Apple’s attempt to maintain its lead in the market, since the Ipod has become the most important product of Apple. Its shares had almost quadrupled in the last year. Today they rose $1.56 or 1.8 percent to $86.95.

Shares of Big Lots Inc. surged about 15 percent today. Big Lots sees the Fiscal first quarter of 2005 earnings in a range of 4 cents a share to 7 cents a share, compared with the 6 cents average forecast. Also, it is projecting sales growth ranging from 2 percent to 4 percent. Although Big Lots’ sales improved this year, the current economic situation still challenges its core customers. According to analysts, better sales in January have also carried over into February.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter