U.S. MARKET AVERAGES
U.S. stocks moved higher Wednesday as inflation and interest rates concerns eased down owing to core consumer prices rise in line with estimates, and oil prices drop of over $1.
The core rate of inflation, which excludes energy and food, rose by a tame 0.2% in January, in line with economists' forecasts. The broader Consumer Price Index climbed 0.7% on higher prices for gasoline and electricity, a greater increase than economists expected and the largest rise in prices in four months.
Shares of companies particularly sensitive to interest rates, such as banks and large manufacturers, rose.
Dow components
Procter & Gamble (
PG: chart),
Boeing (
BA: chart),
JP Morgan (
JPM: chart) and
Caterpillar (
CAT: chart) each set new 52-week highs.
VA Software (
LNUX: chart) climbed sharply on earnings news, extending its peak.
Wachovia (
WB: chart) was another notable stock reaching a fresh peak.
Intel (
INTC: chart) was the most conspicuous mover to a new 52-week low.
Northfield Laboratories (
NFLD: chart) broke to a new low on a WSJ article about its PolyHeme product.
In midday trading, the Dow Jones industrial average rose 73.80, or 0.67%. Sharp rises a handful of its 30 component stocks powered the Dow ahead of broader indexes. The Standard & Poor's 500 index rose 8.69, or 0.68%, and the Nasdaq composite index rose 16.45, or 0.73%.
Bonds rose, with the yield on the 10-year Treasury note falling to 4.53% from 4.57% late Tuesday.
MOVERS AND SHAKERS
Baidu com. Inc. (
BIDU: chart) reported Q4 net earnings of $3 million, or 9 cents a share. The Chinese Internet search engine posted total revenue jump of 29.2%, or $14.2 million compared with last-year same period. Baidu.com forecast Q1 revenue of $15.1 million to $16.1 million. The stock rose 12%.
AmSurg Corp. (
AMSG: chart), ambulatory-surgery center operator, reported Q4 net earnings of 28 cents a share, compared with 29 cents last year on revenue increase of $102.9 million from $87.3 million. For Q1 the company expects adjusted earnings of 32 cents to 33 cents a share. The stock gained 8.3%.
InPhonic (
INPC: chart), online wireless services provider, reported its Q4 net loss widened to $24.6 million, or 69 cents a share, from $7.9 million, or 37 cents, in the year-earlier period. Revenue rose to $85.2 million from $48.7 million. The adjusted loss for the quarter was $14.6 million, or 41 cents a share vs. earnings of $1.9 million, or 5 cents a share last year. InPhonic projected Q1 adjusted earnings of 5 cents to 6 cents a share on revenue of $83 million to $85 million. The company’s shares dropped 24%.
Herbalife (
HLF: chart) reported Q4 net income rise of $30 million, or 41 cents a share, compared with a net loss of $37.4 million, or 68 cents a year ago. Revenue rose to $409 million from $341.6 million. Herbalife expects Q1 sales growth of 16% to 18% and per-share profit of 37 cents to 41 cents. The stock fell 12%.
Intel (
INTC: chart) was downgraded at Think Equity Partners to sell from accumulate. The firm also lowered its price target on the stock to $16 from $26. Intel’s shares fell 2.4%.
ECONOMIC NEWS
The Department of Labor released its report on consumer prices in the month of January on Wednesday, showing that prices rose more than economists had expected due largely to a rebound by energy prices.
The Labor Dept. said that its
consumer prices index rose 0.7 percent in January after an unrevised 0.1 percent decrease in December. Economists had been expecting a somewhat more modest increase of about 0.5 percent.
As mentioned above, the price growth in January reflected a rebound in energy prices, which rose 5.0 percent in January after falling 2.1 percent in December and 8.1 percent in November. Prices for transportation also showed a notable increase, rising 1.8 percent.
The report also showed that core prices, which exclude food and energy prices, rose 0.2 percent in January after a downwardly revised increase of 0.1 percent in December. The growth in core prices came in line with economist estimates.
INTERNATIONAL MARKETS NEWS 
