Inflation Data Looms

Two key readings on inflation will be released Thursday and Friday.Should there be a pronounced uptick in the core Producer Price Index(PPI) and Consumer Price Index(CPI),stocks may be expected to decline.Any such indication that the Federal Reserve will be more likely to raise interest rates in order to rein inflation in,will bring the bears out in force,resulting in a wave of selling.Stocks are already under pressure from a rise in government bond yields.One approach to this danger is to keep new money in money market funds through at least the weekend.