Friends
The markets liked this morning’s slightly lighter than expected CPI report. Today’s number feeds the narrative that the Fed should be able to begin to lower rates sometime this year. I’m not sure the Fed is really inclined to change anything at this point but at least today’s number wasn’t hotter than expected which really would have helped put the Fed in a bind.
As mentioned, the markets were pleased as stock market indices moved to new all-time highs. By the close the Dow Jones Industrial Average was up 349 points to finish the day at 39,908. The S&P 500 was up 61 points to close at 5,308. The Nasdaq Composite Index was up 231 points to close at 16,742. Gold was up $32 to trade at $2,392 per ounce, while oil was up $.78 to trade at $78.80 per barrel WTI.
We’ve mentioned all year that conditions were good for stocks to continue to move higher. Today’s CPI report added a little fuel to that fire. No, stocks are not cheap, but remember valuation is not a catalyst in the short run. Let’s see if the bulls can keep the party going for the rest of the week. Stay tuned.
Have a nice evening everyone.
