Friends
The Producer Price Index, or prices at the wholesale level, came in about as expected today. Overall, the trend is still positive with regards to inflation, but there are still some pockets of concern for the Fed. Regardless, it appears now that all of the recent economic data is in, that next week’s FOMC meeting will result in a quarter point cut in the Fed Funds rate. A 50-basis point cut would be a bit of surprise I think at this point, but not out of the question.
After yesterday’s impressive reversal, stocks moved higher again today with the Dow Jones Industrial Average up 235 points to close at 41,096. The S&P 500 was up 41 points to finish the day at 5,595. The Nasdaq Composite Index was up 174 points to close at 17,569. Gold was up $43 to trade at $2,586 per ounce, while oil was up $1.92 to trade at $69.23 per barrel WTI.
With the Fed about to embark on a monetary easing path, the bulls were able to capture the high ground once again this week. Just when the slowdown narrative was taking shape the bears seem to have lost control of that narrative. Let’s see how the week finishes out tomorrow before we head into next week’s Fed meeting.
Have a nice evening everyone.
