Friends
So, let me get this straight. Fed Chair Powell mentions that the lower inflation readings we have been seeing are likely “transitory” (not permanent), thus there would seem to be no real push to CUT interest rates anytime soon given the strong employment picture and other at least decent recent economic data- and the stock market throws a little tantrum? Good grief! I guess putting a stop to rate hikes isn’t quite enough opium for the addict. In our view, Powell has given the market quite enough dovish dialog since the beginning of the year. My goodness, what else do they want from the man?(stupid question, they want rate cuts). By the way, a little pullback here would not be a bad thing given the run we have had so far this year, but I digress.
After yesterday’s pullback, stocks once again were in retreat today with the Dow Jones Industrial Average down 122 points to finish the day at 26,307. The S&P 500 was down 6 points to close at 2,917. Gold was down $11 to trade at $1,272 per ounce, while oil was down $1.93 to trade at $61.67 per barrel WTI.
Remember, we get the non-farm payroll number tomorrow and it is expected that about 213,000 new jobs were created in April. And, back to the Fed for a moment, since they are being “data dependent” it would be rather strange for them to pivot to cutting rates at the moment. Perhaps tomorrow’s jobs number will disappoint, but remember, this was also supposed to be a disastrous earnings season. But, more than half the companies have now reported and it appears there might not even be any drop off at all. Let’s see how the week finishes up tomorrow.
Have a nice evening everyone.
