Friends
For years when stocks rise we heard it referred to on Wall Street as a “risk on” day. Down days have been referred to as “risk off” days. I’d like to amend that just a bit as now I would refer to today’s down move as an “inflation off” move. Interest rates dropped, energy and financial shares moved lower and low inflation and interest rate stocks were the strongest (the old big tech growth companies for example). The inflation argument is fascinating. Though armies of analyst on Wall Street fear that it is the biggest challenge for the Fed in the months ahead, bonds aren’t confirming that and today’s stock winners and losers aren’t either.
Anyway, by the close the Dow Jones Industrial Average was down (though off the lows of the day) 208 points to finish the day at 34,577. The S&P 500 was down 8 points to close at 4,343. The NASDAQ Composite Index was up 24 points to close at 14,663. Gold was up $14 to trade at $1,797 per ounce (gold is in its own world), while oil was down $1.44 to trade at $73.72 per barrel WTI.
So as we move forward into the second half of the year I’ll be watching for whether the trading days are “inflation on” or “inflation off”. My guess is that it will go back and forth for a while.
Have a nice evening everyone.
