Friends
We are officially in Fed watch mode. The FOMC two day meeting began today and we’ll get the decision tomorrow. Of course, the expectation is that the Fed will raise rates a quarter of a point, then try to “soften” the blow by maintaining that the glide path higher will be slow and deliberate, and of course data dependent. Market participants seemed at ease during today’s trading session, as stocks rocketed to a 250 point gain in the Dow by late morning. As the day wore on, some of those gains evaporated, but it was a good day for the bulls nonetheless.
By the close, the Dow Jones Industrial Average was up 156 points to finish the day at 17,524. The S&P 500 was up 21 points to close at 2043. Gold was down $2 to trade at $1060 per ounce, while oil was up $.85 to trade at $37.16 per barrel WTI.
Yes, the stock market seemed to give Janet Yellen the green light for tomorrow’s anticipated rate hike today. On the economic front, the CPI number was a little less deflationary than expected, which could also help the Fed feel a little better about their decision. Stay tuned, tomorrow’s market action should be interesting.
Have a nice evening everyone.
