News & Observer | newsobserver.com | Today in business

Published: Oct 15, 2008 12:30 AM
Modified: Oct 15, 2008 05:53 AM

Today in business

 

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CONTRACTION EXPECTED IN PPI

The Producer Price Index, a gauge of wholesale prices of goods, is expected to have contracted for the second consecutive month in September. A chief reason is the expected decline in energy-related products. They fell by more than 11 percent between July and August. Reductions in wholesale prices could translate to lower consumer prices. The core index, which excludes energy and food, is expected to remain flat from the previous month.

LOSS FORESEEN FOR JPMORGAN CHASE

JPMorgan Chase is expected to swing to a loss amid upheaval in the financial markets. Still, JPMorgan has held up better than many peers and some analysts believe it could benefit big as the crisis enables it to build market share and earnings through acquisitions. In September, it purchased Washington Mutual's banking operations for $1.9 billion, and in March used a government backstop to purchase Bear Stearns. Credit Suisse analyst Susan Roth Katzke rates JPMorgan "outperform," noting the WaMu acquisition is expected to boost earnings. "We expect JPMorgan to fundamentally outperform peers" due to leadership and balance sheet strength, she wrote.

Also today Wells Fargo, which is buying Wachovia, reports its financial results.

COKE'S EARNINGS MAY BE DOWN

Beverage giant Coca-Cola is expected to report lower third-quarter earnings than a year ago. Investors will be watching how price increases from bottlers, which influence retail prices, will affect sales. JPMorgan analyst John Faucher expects Coke to meet estimates, but writes that macroeconomic conditions have been pressuring consumers.

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