Friends
So far, it appears the “don’t fight the Fed” narrative is winning as the bulls pushed the market averages to new highs. Despite the uncertainty of when and how much, it is almost certain that the Fed will be lowering rates again in the near future, and that seems good enough for the bulls.
As for today, by the close the Dow Jones Industrial Average was up 124 points to finish the day at 46,142. The S&P 500 was up 31 points to close at 6,631. The Nasdaq Composite Index was up 209 points to close at 22,470. Gold was down $38 to trade at $3,678 per ounce, while oil was down $.38 to trade at $63.67 per barrel WTI.
One thing that could be in the way of higher stock prices near term is valuation. Stocks trading at 22-23 times next year’s earnings estimates aren’t cheap. But we know valuation is usually a bad timing mechanism. So for now let’s first see how the week finishes out tomorrow.
Have a nice evening everyone.
