Stocks at 4-month highs, oil at 5-month lows

[Omaha Steve]

http://money.excite.com/ht/nw/bus/20060915/hle_bus-n15471070.html

Stocks at 4-month highs, oil at 5-month lows

Friday September 15, 6:30 PM EDT

By Kevin Plumberg

NEW YORK (Reuters) - Major stock indexes hit fresh four-month highs on Friday after reports showed inflation was mostly contained while a drop this week in energy prices suggested cost pressures were easing.

The dollar also climbed, largely because traders pared positions against the greenback ahead of a weekend meeting of Group of Seven central bankers and finance ministers. But U.S. Treasuries gave up early gains on a bout of technical selling.

The consumer price index rose 0.2 percent in August, for both the overall and core readings, matching market forecasts. Core CPI excludes food and energy costs.

When the Federal Reserve meets next week, it is expected to keep the key federal funds rate steady at 5.25 percent after halting its rate-increase campaign in August on the view that slowing growth will moderate upward price pressures.

FULL story at link above.

[ariellyn]

1. Four-month highs is pretty short sighted

Stocks plummeted in May and have yet to return to the same price levels. There's been about 50% recovery to the pre-crash prices.

This seems like another attempt to lure people in before the next crash.

[still_one]

2. they believe the lower gas prices will motivate consumers to buy

[RUMMYisFROSTED]

3. No. They believe lower gas prices will motivate them to vote.

[leesa]

4. A little short-term manipulation on both to get the votes out, eh GOP?