Friends
We still have intraday volatility, but the range of motion has been narrowing over the past couple of sessions (less than 300 points today). But don’t get me wrong, there is still plenty of volatility. The Dow, for instance, was up nearly 100 points at 2:40 PM and was up only 20 points by 2:44. It may not be as wild as it was last week, but that’s still quite a move in four minutes (and by the way, there was nothing different at 2:44 than at 2:40 other than we were all four minutes older). Over the next fifteen minutes stocks seesawed around but still in positive territory.
By the close, the Dow Jones Industrial Average was up 39 points to finish the day at 24,640. The S&P 500 was up 6 points to close at 2,662. Gold was up $5 to trade at $1,331 per ounce, while oil was down $.06 to trade at $59.23 per ounce WTI.
All eyes will be on tomorrow morning’s CPI report. If it is too hot, one would expect bonds to sell off (rates rise). Remember, the recent 10% selloff began with inflation fears and rates rising. Economists’ consensus is that the month over month change will be .3% and the year over year change will be 2%. It may be the case that market participants got a little carried away with the wage inflation fear that the jobs number sparked a week and a half ago. But, of course, we’ll let the numbers do the talking.
Have a nice evening everyone.
