Friends
Stocks were quiet as traders wait for inflation data to be released this week. On Wednesday we will get a look at the Consumer Price Index and then on Thursday we will get the Producer Price Index. Remember, the last couple of months CPI data has been a little hotter than expected or wanted, and combined with continued strong jobs data this is making the Fed’s job more complicated. They were hoping to have a clear path to lowering the Fed Funds rate but that has not unfolded. Suffice to say three hotter than expected numbers in a row could be a problem for those hoping the Fed would be reversing monetary policy soon.
As for today, by the close the Dow Jones Industrial Average was down 11 points to finish the day at 38,892. The S&P 500 was down 1 point to close at 5,202. The Nasdaq Composite Index was up 5 points to close at 16,253. Gold was up $12 to trade at $2,358 per ounce, while oil was down $.28 to trade at $ 86.63 per barrel WTI.
Interest rates have been inching higher and market participants are asking when is that going to be a problem for stocks? Stocks have been able to tolerate higher rates as time has gone on in this cycle, but one wonders where the breaking point might be. Another hot CPI number could be a problem. But let’s wait and see how the week unfolds data wise before we try to form another new narrative. Stay tuned.
Have a nice evening everyone.
Jim
