Wall Street Greek: Premarket Report: CPI, Mortgage Activity & Oil Inventory

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Premarket Report

Today's premarket report highlights the Consumer Price Index, Mortgage Activity and Crude Oil Inventory data.

Consumer Price Index

Reported at 8:30, the Consumer Price Index rose 0.1% in May, versus economist consensus expectations for a 0.3% increase. Core CPI, less food and energy, increased 0.1% as well, against an expectation for a 0.1% rise. The increase in the core figure is consistent with recent trend, and continues to evidence prices as a stubborn foe. We've argued here that it's much easier for industry to raise prices than it is for prices to be cut. There is a natural anchor to human nature that competitive forces can impact, but against great resistance.

Mortgage Activity Report

The Mortgage Bankers Association reported on mortgage activity early this morning. Rates on contracted 30-year fixed rate mortgages eased a bit in the week ended on June 12, to 5.5%, from 5.57%. Still, the Market Composite Index dropped another 15.8% on a 23.3% decrease in refinancing activity. The Purchase Index continues to offer reason for hope, as it fell only 3.5%. Recall, over recent weeks, this measure has shown growth even as rates have climbed. We speculate it is a green shoot for housing, but also reflects the appeal of foreclosure property flooding the market.

Bernanke & Bair Road Tour

Federal Reserve Chairman Bernanke and FDIC Chair Sheila Bair are scheduled to address a summit on financial literacy. Based on his testimonies to Congress on the subject, we've come to know this as one of Bernanke's pet projects as he looks out for the little guy.

Oil Inventory

The EIA publishes its Petroleum Status Report at 10:30 this morning. Last week's data, covering the period ended on June 5, showed crude oil inventory decreased by 4.4 million barrels. That data further stoked the already spooked oil pit, taking oil solidly above $70. Recent valuation consideration and skepticism has impacted both equities and commodities (recall our call to sell in June), and oil flirts with the $60s once again. U.S. crude oil inventories are above the upper boundary of the average range for this time of year. Gasoline decreased by 1.6 million barrels; gas prices have increased steadily from their lows as well (in case you live on Mars).

Corporate EPS Reports

Wednesday's earnings schedule includes news from Actuant (NYSE: ATU), CLARCOR (NYSE: CLC), FedEx (NYSE: FDX), IHS, Inc. (NYSE: IHS) and Somanetics (Nasdaq: SMTS).