Friends
Wow, today’s retail sales number was much better than expected. In addition, we saw a very good earnings release from Walmart, who indicated that the consumer was actually doing pretty well. Add all of that to this week’s positive inflation data and you had a recipe for a nice rally in stocks.
By the close, the Dow Jones Industrial Average was up 554 points to finish the day at 40,563. The S&P 500 was up 88 points to close at 5,543. The Nasdaq Composite Index was up 401 points to close at 17,594. Gold was up $15 to trade at $2,494 per ounce, while oil was up $.90 to trade at $77.88 per barrel WTI.
Going into this week we wanted to see if inflation was still moderating – it is, but we also wanted to see if the economy was in jeopardy. Today’s retail sales number and jobless claims number both helped put some of those worries aside. Remember, consumption drives the U.S. economy and if folks are able to hold onto their jobs, that last week’s “the sky is falling” scenario doesn’t seem to be at play. At least at this point.
This has been a great week for stocks. Let’s see how it finishes up tomorrow.
Have a nice evening everyone.
