PPI Worries Weigh Down the Market

It might be too early to start worrying about the producer price index, but you'll likely see its effects on growth stocks today anyhow.
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Lot of crosscurrents. Too many. The bonds continue to act horribly. Oil keeps going higher. These seem like a tag team to me.

Why is it so worrisome? Because we know the

Fed

expects inflation scares to die down. That's why it only nudged rates up a tad. Oil at $20 is not "dying down." Remember the last time the

producer price index

flared up?

Yep, the whole market turned down.

It is probably too early to be scared about the PPI. But it is reverberating throughout this market this morning and will make everything, particularly growth stocks, very heavy.

Meanwhile, the drug run, which was so beautiful, seems to be halting. (And if you wonder why we worry about

Medicare

, take a look at all of these nursing-home and drug-distribution companies that are being killed because of Medicare regs.)

And the banks don't act well. I love it when the banks act well, so there is no way I can love it when they don't.

That said, for me, I want the market down so I can buy my faves ahead of earnings, particularly the papers and chemicals, which seem on tap for some good pin action.

Random musings:

A couple of clarifications. Some of you were perplexed that I seemed to be buying

Nokia

(NOK) - Get Report

on "inside information" as a London friend gave me a heads-up about a contract. Please! Before you convict me, my friend was reading the European papers to me. It hadn't been reported in the U.S. Give me a break! ... Lots of rumbling on the boards that I am involved with some stock that

Herb Greenberg

has been

writing about (

IDT

(IDTC)

). I had never heard of the stock until I saw it in his column and am totally not involved and have not spoken about stock to Herb Greenberg in two years. Do me a huge favor and shut up before I have to sue you for libeling me. My two conversations with Herb in the past year involve roller coasters,

Hershey Park

vs.

Busch Gardens

, and which places are best for kids. I did see Herb at a charity event, mostly because my wife wanted to meet his wife. Sue her for that and deal with me. Periodically people accuse him of fronting for me. That is plain wrong, so knock it off.

James J. Cramer is manager of a hedge fund and co-founder of TheStreet.com. At time of publication, his fund had no positions in any stocks mentioned. His fund often buys and sells securities that are the subject of his columns, both before and after the columns are published, and the positions that his fund takes may change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column at

jjcletters@thestreet.com.