Friends
Today’s CPI release, added to yesterday’s PPI release, helped investors get more comfortable with the current inflation picture. Though neither release was much different than expected, the worst-case scenario was averted. Bonds yields moved lower, and stock prices soared higher.
By the close, the Dow Jones Industrial Average was up 703 points to finish the day at 43,221. The S&P 500 was up 107 points to close at 5,949. The Nasdaq Composite Index was up 466 points to close at 19,511. Gold was up $36 to trade at $2,718 per ounce, while oil was up $3.08 to trade at $80.58 per barrel WTI.
In addition to the calming inflation data, several big banks had fantastic earnings releases this morning. Though valuations are stretched, and the interest rate backdrop is murky, corporate earnings might be really good this quarter. The big banks kicked things off today, but we will have several more weeks of corporate earnings to sort through. Stay tuned.
Have a nice evening everyone.
Jim
