Producer prices posted their largest increase since September 2012. The Labor Department reported producer prices rose 0.6% in April, up from a rise of 0.5% in March. The increase was fueled in part by a big increase in food costs, which saw a jump of 2.7%. The producer price index, an indicator of inflation, measures price changes received by firms for goods and services before they reach consumers.
April’s producer prices figure, up 2.1% from a year earlier, comes just after International Monetary Fund chief Christine Lagarde said in a news conference on Tuesday that inflation in the Eurozone and other advanced economies is too low and poses a risk to the global economy. She also said tapering by the Fed could be a threat to emerging market economies.
One of the stocks the Yahoo Finance team is watching is Deere (DE). The world's largest maker of tractors and other farm equipment cut its sales forecast for the year. It now expects a decline of 4% versus its previous forecast of a 3% drop. But earnings of $2.65 a share surpassed analysts' estimates of $2.48. While revenue was down to $9.95 billion from last year, it beat estimates by $300 million.
We're also watching Macy's (M) which reported earnings before the bell this morning. Earnings came in at $0.60 a share, beating estimates by a penny. Revenue fell to $6.28 billion, missing expectations of $6.46 billion. The company said it reaffirmed its full-year guidance and said its same-store sales were down 1.6% in the first quarter, but for the full year it expects comparable-store sales to increase by 2.5% to 3%.
According to the J.D. Power & Associates North America Airline Satisfaction Study released today, passengers are happier with airline service, even with the higher cost of flying. The industry was rated 712 out of 1000 points. It’s the second-consecutive year satisfaction has risen, and it’s the highest ranking since the study adopted a new methodology in 2006.
In our poll today, we want to know what you think of the airlines. Are you satisfied with airline services, even though many of them have raised prices or cut amenities? Cast your vote, or leave a comment below or on Twitter.