Friends
Today’s CPI number came in about as expected, with inflation growing at 2.7% year over year. That is still stubbornly above the Fed’s 2% target but given that a big chunk of the monthly increase was from shelter and many think that will turn lower soon, market participants are still confident that the Fed will lower the Fed Funds rate at next week’s FOMC meeting.
Stocks moved higher (other than the Dow which was weighed down by the shares of United Healthcare) during the trading session and by the close, the Dow Jones Industrial Average was down 99 points to finish the day at 44,148. The S&P 500 was up 49 points to close at 6,084. The Nasdaq Composite Index was up 347 points to close at 20,034. Gold was up $35 to trade at $2,753 per ounce, while oil was up $1.72 to trade at $70.31 per barrel WTI.
The Fed has all the information that they need going into next week’s meeting and market participants are convinced that we are in line for one more rate cut this year. After that if appears that all bets are off and if inflation remains sticky the Fed may move much slower with regards to future rate cuts. In the meantime, let’s see if the bulls can keep the party going into year end. Stay tuned.
Have a nice evening everyone.
Jim
