Food and Energy in PPI Focus

This morning's May producer price index reading served us some confirmation for my concern over the restaurant industry. The May reading, which ended two months of declines, came in at +0.5% compared to +0.1% consensus.

Driving the quicker-than-expected rise in producer prices was consumer foods (+0.6%) and energy (+1.3%), both of which reversed directions from declines in April. The combination of higher food and energy prices at the producer level raises the prospects of higher consumer prices in the coming months. After several months of lackluster savings and dismal disposable income not to mention a modest bump in gas prices year over year, this could hit the consumer as he or she gets ready for the back to school season....499 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.