Friends
Stocks finally took a breather today and that might be the best thing that could have happened. A little pause that refreshes would be welcome at this point, at least in my opinion. Over the next couple of days, we’ll look at inflation data beginning with the CPI number tomorrow morning. If inflation continues to abate then I would expect the Fed to continue to lower interest rates in the coming months beginning with the December FOMC meeting. Remember we just got a quarter point cut last week. It appears that if the inflation and jobs data allow, we will get one more quarter point rate cut before year end.
As for stocks, by the close the Dow Jones Industrial Average was down 382 points to finish the day at 43,910. The S&P 500 was down 17 points to close at 5,983. The Nasdaq Composite Index was down 17 points to close at 19,281. Gold was down $11 to trade at $2,607 per ounce, while oil was up $.03 to trade at $68.07 per barrel WTI.
I would think that a bad inflation print, or a terribly weak jobs number next month would be the most likely things that could derail a rally into year end. Other than that, the bulls still hold the high ground despite today’s small setback.
Have a nice evening everyone.
Jim
