Friends
On the economic front, the PPI number was a non-event, retail sales were positive, but barely, and consumer sentiment was quite a bit worse than expected. Nevertheless, stocks enjoyed another day of gains, but noticeable is that not all stocks are rising and falling together these days. It has indeed, become more of a stock pickers market lately. As for today’s action, the averages spent the entire day in positive territory, and volatility was somewhat benign.
By the close, the Dow Jones Industrial Average was up 75 points to finish the day at 15,376. The S&P 500 was up 4 points to close at 1687. Gold was down again, as the precious metal fell $7 to trade at $1323 per ounce, while oil was down $.10 to trade at $108.50 per barrel WTI. The bulls were not able to capture the 1700 level on the S&P, but they did continue to push the Dow comfortably above 15,000.
Next week is the all-important two day FOMC meeting. We expect to get some news regarding the beginning of the tapering process, which has been discussed ad nauseam lately. The taper is coming. We’re confident to express that view, but just how much less punch will the Fed add to the punch bowl in coming months is the question. Our best guess is that the taper begins soon, but the amount will be somewhat muted, due to recent conflicting economic data. Next week should be an interesting one.
Have a great weekend everyone.
