Friends
For the third day in a row, trading was quiet and stocks had little movement. Even the Fed minutes were unable to stir animal spirits. Speaking of those Fed minutes, it appears that the FOMC has moved on from any possibility of a June rate hike (no one really thinks that is likely anyway), but perhaps a September hike is on the table. In the minutes you could sense that Fed officials are concerned about how the bond market will react to the beginning of a tightening cycle, but you know what? You have to start somewhere.
Anyway, as for stocks, by the close the Dow Jones Industrial Average was down 26 points to finish the day at 18,285. The S&P 500 was down 2 points to close at 2125. Gold was up $3 to trade at $1209 per ounce, while oil was up $.86 to trade at $58.85 per barrel WTI.
Back to the Fed and the likely tightening someday. There is no way market participants could be surprised by a deliberate tightening process that would unfold over the next several years. Maybe the Fed should just concern themselves with the data at hand and stop always trying to control/massage the markets. Markets will do what markets will do. Regardless, let’s see how the rest of the week plays out. So far, very quiet.
Have a nice evening everyone.
