Gas Prices Leading to Inflation

Matt Nesto analyzes the morning business headlines.
1:00 | 03/16/12

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Transcript for Gas Prices Leading to Inflation
We've got your business report now also joining me now as he does every Friday to discuss the headlines as Matt Nestor co -- of break out. On our partner Yahoo! finance good morning Matt thank god it's Friday amen sister and -- smartly at the new economic data out within the -- and past hour. First -- the Consumer Price Index which was up point 4% in February the largest gain in ten months how this is due to higher gas prices. It's 75%. Or three cents of that for that four tens of a percent -- Stephanie the gasoline prices were up about 6%. -- -- year which there according. You know to federal government dated actually seem soft compared to like -- pump price data which would show more like a ten or 12%. Year on year gain but clearly you know the price of fuel is. The leading and I would say it only area where we're seeing any inflation because things like apparel were actually down almost 1%. And we soft key areas like food and housing. Basically flat on the month and medical care health care was up just 210s of -- percent so inflation collectively. Really still not a huge problem outside of those. -- gasoline prices. -- -- -- also also -- just fifteen minutes ago industrial production. Which came in it was up point 3% in February -- and finally we're expecting new numbers on consumer sentiment this morning -- what are we looking for there. Okay two things -- -- about industrial production so you know it's a volatile number we went to flat for February but were revised up the prior month so. You know -- all bets are off we've been bounce around that we've had a zero print if you will on industrial production has recently I think is November. Let -- a -- -- -- definitely wanna see it going higher the second component of industrial production. Is capacity. Utilization. Meaning how much spare capacity -- we have and our factories and utilities in plants in this nation and we came in -- about a seventy. Percent level which is really not change -- we have about 22%. Spare capacity that tends to keep wages and things -- in the second side of the question. Coming out later this morning is going to be there Michigan -- number the preliminary the first -- for march we're at a one year high and in February I would see. And that number probably may be sticking we've had great gains in the stock market since the last report. But we've had that gasoline situation this really has an effect on consumer sentiment so wouldn't expected giant advance in Michigan number -- -- worth watching. -- OK let's switch gears now on to apple the company stock jumped over the 600 dollar mark yesterday unbelievable propelled by the premier of of course. The new iPad today. How -- do you see this stock going in the near term. Well the -- I don't -- -- how much higher but you know here I have talking me on not an analyst so. -- the matter that was look at it up if you look at all the analysts there's like fifteen. -- analysts that cover. Apple framing. 90% of them rated a by the price target average is actually come alone -- only 618. So we're gonna -- see some of those numbers going up. The high -- -- there are half a dozen male also seven that rate would that see the stock in the next twelve months going north of 700 in the high -- -- that I can finally even though with a guy -- but he -- at 730 there's some pretty respectable analyst though that easily see the in the stock going north of 700. Based on the -- in a -- extrapolation of numbers in earnings and all these wonderful thing. That's -- -- they get paid the big bucks I supposed. They do have so much momentum apple not the analyst right now is there anything these analysts say the company -- do wrong. Well let you know and as some people are blinded -- that there you know blast and called fan boys because they can't see anything wrong with -- apple they love it they point to. How what's completely. Stampede and trampled every estimate in the past. Yet there is a lot of things that can go wrong I mean I think the situation were talked about. A lot of reporting lately that was done their factories in China they've gotten kind of a free pass on that and I think people have been willing to buy the product did not really. Think about the conditions. From which you came. You know good earnings growth can slow one you know slow uptake for the iPad three. Was I think with a New York Times wrote they're good technology columnist said and I -- -- the money. Find the three just wait whereas the Wall Street Journal when not to set out some believe will sell out of the product uptake slows down of the growth slows if that -- if this is the cell phone companies. Have a hard time and pushing through that data we've talked about those data package bland that unlimited service and enacted -- and there's a million things actually that could trip up there executed to perfection. Plus -- exceeding expectations and have been for really you know eight years. Absolutely -- it. Google is facing an investigation for bypassing privacy settings on Apple's safari browser where do you see this going. I think it's gonna end up you know we've we talked about this that I think it's obviously gonna end up in Washington it will go through the courts but I think we're gonna see legislation. Coming out of this -- all of this technology. Is still. In this kind of pioneer days and that we've seen lawmakers try to jump on the bandwagon it's a populist theme but at the same time -- mean there's a lot of developing. Technology is that track Q what people want it don't you want do these electronic pay things even even ones that are even all that new like -- Mobil gas station you'll. With dual card -- -- that at the pump those near field. Communications kind of things. All of that data is being used and stored so there's going to be some legislation coming out of this it's always going to be after the fact but I think you know in the meantime. Google kind of pushes pulls back if I have a track record of doing that's so. You know I think -- -- -- going to be on the on the legislative action coming out of Washington. Okay circling back over to oil that there was a wild ride yesterday sparked by a false report -- have things settled down. -- they have we've settled into about a 105 dollar range at a guest on. My own show earlier he had said you know how much of this price 105 dollar -- well and asked them. Is due to the situation in Iran he's -- -- box right I was like. Good for -- man for a nice straight answer. But the truth of the matter is is -- they said you know the price is definitely high yesterday was a report that so far has been denied and refuted that the president was gonna release oil from the strategic petroleum reserve which is supposed to be used in times of war and disaster like when the Katrina hurricanes had done basically every oil rig in the Gulf of Mexico and when we. Invaded Libya and when we. Invaded Iran from Iraq brother for the first time so I don't I don't think 105 dollar oil in and of itself is reason to do it in -- I was the president trying to get real. I was just gonna say fine Collins this business. Time email actually already not. Yeah RA. So -- that's why I've got some traction but it was quickly -- -- was it it was a two dollar profit in level -- -- off again. All right let's -- -- look at the Dow before we let -- -- mad trading up about 25 points looks like. Winning streak that's continuing at least on the Dow Nat Nast. From our partner Yahoo! break out finance thanks so much Matt present us.

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

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