Friends
What a week! Stocks moved back up again today as the roller coaster ride continues. On the economic data front, the PPI number which measures inflation at the wholesale level came in lighter than expected with core year over year at 3.3% versus the 3.6% expected. On the other hand, the consumer sentiment numbers came in quite a bit worse than expected. So, with mixed news on the economic front, stocks turned to the bond market where rates were once again rising, continuing to confound traders. Just this week the yield on the 10-year Treasury note moved from less than 3.90% to over 4.50%.
As has been the case this week, stocks were all over the place this morning, but this afternoon it was being reported that the President had been speaking with CEO’s and listening to their concerns about trade wars and their urging him to move forward and focus on his growth agenda. Stocks moved higher into the close.
For the day, the Dow Jones Industrial Average was up 619 points to finish the day at 40,212. The S&P 500 was up 95 points to close at 5,363. The Nasdaq Composite Index was up 337 points to close at 16,724. Gold was up $69 to trade at $3,246 per ounce, while oil was up $1.52 to trade at $61.59 per barrel WTI.
This was possibly the most volatile week of trading I have ever seen except for maybe the 1987 crash week. Daily swings of up to 10% is certainly not normal. It was good to see stocks finish the week on a high note given the stress in the bond market. Let’s catch our breath, marinate some ice cubes, and watch a little of the Masters.
Have a great weekend everyone!
Jim
