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Today’s CPI report came in a little higher than expected, which was enough to spook the bulls - and remind everyone that inflation is still a force for traders to reckon with. We’ll be reckoning with it again tomorrow morning when PPI is released ahead of the cash open.

So long as inflation is running hot or, in this case, warm, the basic materials sector (as tracked by the XLB ETF, for instance) are a smart move, like a hedge and profit play rolled into one. The reason is dead simple economics: Companies that deal in materials can up their prices (and their bottom lines) without dinging demand.

Tonight we’re going to look at classic materials stocks - miners like Freeport-McMoRan (FCX) and Newmont (NEM), and several more. We’re also going to look at a stock that’s not in the basic materials basket… but sure ought to be.

Video Length: 00:08:26

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