Consumer Price Index Fell and Industrial Production Rose in October

Sheila Dharmarajan discusses the latest economic numbers.
7:44 | 11/16/11

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Transcript for Consumer Price Index Fell and Industrial Production Rose in October
Dow futures were down as we approach the opening bell this morning. Joining me now to discuss all the business headlines at this hour and there are a lot of that -- -- -- -- from Bloomberg TV's illustrates EL. Stephanie -- so we have to get to these new numbers we just -- -- in the past hour on the Consumer Price Index which actually fell 110 of a percent in October and just minutes ago. Wheeler factory output rose point 7%. So help us interpret these numbers. Yes silly string of data about the American economy coming out this morning let's -- -- CPI because this is an important one that people liked because it is a measure of inflation. You mention it fell eight tenths of -- percent to nearly 1% for the month of October. And that was really unexpected -- declined very unexpected in fact it's the first time we have seen. A negative CPI number in four months. So let me a couple of things -- not certainly means that the cost of goods may be coming down all this -- -- commodity prices. Rising input cut perhaps -- some abatement there so that's good news for retailers who don't have to deal would -- increasing their prices to make up for those costs. I don't think it is another piece of information for the affected decide if they do they do not want to intervene in the economy. Inflation has certainly always been one of the big concerns but whenever the Fed does decide to intervene. It isn't exactly a data point of good news -- inflation clearly not a big deal at least for the month of October. I'm industrial production again as you mentioned we got a better than expected number seven tenths of 1%. And that's good because manufacturing has always been one of the bright spots in the American recovery. To the fact that we are still seeing factory output to -- -- -- industrial production up. Certainly a good sign for the overall health of the US economy but as -- only -- Stephanie one month does not make -- -- -- some good news for the month of October. We're gonna have to -- these trends -- you mentioned the market opened lower. That it's really because some comments coming out of the Bank of England this morning. Very concerned about the state of the year. And fast to have the solution and as we could really see a major impact -- the global economy. Well you know since you bring it up let's turn out to Europe because Italy has an incoming premier Mario Montes and yes it's his cabinet. But earlier today Italy's bond yields jumped above that 7% threshold. How problematic is that Vermont is new government discuss an economist right he should be able to solve the problems -- that's them well. Yes he's a technocrat that's the technical term they like you to describe people like -- because he's -- really academics technical people. Who understand kind of the ins and outs of running this economy he's not a leader -- -- he didn't have a ton of political experience but. Nonetheless people are calling him Super Mario to see people coming and save it delete from the European -- -- -- But as you mentioned the big sticking point of that plane though are this Italian -- -- As you mentioned above 7% that means that the market is still receiving a great amount of risk around the Italian economy. Around the status and their balance sheet. And because -- more and more expensive for -- it will borrow certainly makes it harder for them to run their government in a lot of economists you're seeing that. Mario Monti really needs to come -- Put a plan quickly in the place really -- very quickly how he's gonna bring down Italy's debt load. -- -- measures to hit the Italian economy of course that is gonna have an impact in the overall economy but in terms deceiving Italy from that -- crisis speed is of the essence particularly when you keep in mind is rising Italian by -- Yes how much on signs out there and -- crisis maybe hitting close to -- cylinders -- JPMorgan Chase and Goldman Sachs tell us about pat. A HBO a little bit here because JPMorgan and Goldman Sachs -- she very very large -- traders in what's known as credit derivatives. Think -- lot of trading and -- also insurance -- ups on Italian. Greece a European debt in general -- here's the thing we know that they do a lot of trading in these. Is the banks don't really want to give us any information about exactly how much exploited they have been European debt crisis. You know they give some very large headline numbers against him Gary can -- -- numbers but no exact. Could really point of concern for investors because if any of these governments word. It obviously have an impact on Goldman Sachs and -- and the lake here and show you how important it is you know Jeffries is to boutique investment -- that we talked about a lot. They actually have fallen 20% over the past governments because of this fear of the exploiting to European debt. To the fact it JPMorgan Goldman Sachs and not really letting any information not great for investors and clearly seeing the after product of his -- that lack of transparency. Citigroup the nation's third largest bank planning layoffs but details. Yes Stephanie not good news where the economy and particularly in New York City search is telling Bloomberg News -- C Davis claimed the -- 3000. G next couple months. And that is about 1% of its workforce huge cut potentially coming up -- -- group here. And I want to mention a lot of is probably going to be in the investment banking and trading division here's it's happening. He take a look at these investment -- he can. Initial organizations we've talked a lot about how investment banking revenues are coming down -- trading revenues are coming them. -- they need to counter act does decline in revenues to the waiter doing it is like trimming costs. And unfortunately trimming 'cause does mean light and lasted and that's certainly what we're hearing from -- -- right now. Certainly not agree picture when he conceded that unemployment in the US overall still 9%. At one point earnings report we want hit target is out with its earnings out of the company do. Very laughs -- -- they hit the bulls if you'll college that acquiring they'd -- -- in a -- 87 cents a share vs expectations of 74 cents a share. -- is really helping them out they still have their katic regulation that division posted very good numbers which it did help results here. Also I didn't if you've been in a target lately but -- -- -- they're actually doing letting grocery business in their story straight now. Today adding -- they're adding grocery offerings that is also becoming a bigger part of their revenue and helping out the company gently playing at and the results target's stock is up this morning. OK what about 1 another headline this morning and that is oil seal oil hit a hundred dollars a barrel today for the first time since July what's behind that. Yeah well actually right now at 10183. -- -- -- -- above -- 100 dollar in mark level a couple of things happen. Here were expected to get crude inventory reports today some economists are saying that -- actually expecting a decline in those inventories of course -- of -- -- That there will be a rise -- prices skyward a policy that is one piece of data that the market is waiting for us as much as we talk about a slowdown in the developed economies like you a senior -- A lot of economists actually saying take a look at China takes a look at India. Their hunger for oil has not abated at all and that is what is continuing to drive up oil prices certainly not good for you and me as he had -- the gas pump but he'd be a little bit of a silver lining here and that growth in terms of the global overall economy is not dead may be hopeful signs there okay. -- watching today. Coming -- thinks that that's the -- retailing they actually reported earnings this morning and it was a huge disappointment. They missed their profit expectations -- a big way it is certainly wanted to keep and I and as you approach the holiday season there's been so much concerned about the consumer -- to -- willing to open up their wallet again. Now of course the toilet over a hundred bucks a barrel maybe even more of -- -- to that wallet to the fact it ever coming face that this is bananas high teen retailers. Occasionally disappointing numbers maybe not a great night a lot of folks -- -- these retailers very closely to get it signed. And the health of the US consumer. As for markets we are starting on a red day today in fact all three major indices are down. The Dow down by over 120 points and -- about a percent NASDAQ and S&P down about 19% -- to not a great start to the morning hopefully it's gonna turn around by -- and -- -- from Bloomberg TV great to -- you. -- -- -- --

This transcript has been automatically generated and may not be 100% accurate.

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