Friends
Don’t look now but we have a little rally going. Stocks have for the most part moved higher since the beginning of the year, but the first real test will come tomorrow morning with the release of the much-anticipated CPI report. It is assumed that inflation is lessening on the retail level, so it is important that tomorrow’s number isn’t too hot. The market is expecting/hoping that the Fed is talking tough but will back off their hawkish stance if the data continues to show improvement on the inflation front. If you want to know what market participants are expecting, just take a look at the bond market where rates have been moving lower for months.
As for today, by the close the Dow Jones Industrial Average was up 268 points to finish the day at 33,972. The S&P 500 was up 50 points to close at 3,969. The Nasdaq Composite Index was up 189 points to close at 10,931. Gold was up $4 to trade at $1,881 per ounce, while oil was up $2.44 to trade at $77.56 per barrel WTI.
Buckle up, whatever the CPI number is, there is likely to be some action in both stocks and bonds during the trading session tomorrow. We’ll let you know how it all goes.
Have a nice evening everyone.
