Friends
Pessimism still prevails, but stocks didn’t fall as much today as they had the two previous sessions. That’s about the best I got for you today. As we wait for the “inevitable” recession, economic data continues to muddy the waters. On Friday we get the November PPI report and then next week the CPI data. Though it appears that inflation has begun to roll over, the Fed continues to indicate that higher interest rates are in the cards into early next year. Will these inflation reports support the Fed’s position, or will they provide fuel for a Santa Clause rally?
As for today, by the close the Dow Jones Industrial Average was up 1 point to finish the day at 33,597. The S&P 500 was down 7 points to close at 3,933. The Nasdaq Composite Index was down 56 points to close at 10,958. Gold was up $17 to trade at $1,800 per ounce, while oil was down $1.94 to trade at $72.31 per barrel WTI.
With all the pessimism it does feel like we could be set up for a year-end rally. But if those inflation numbers come in hotter than expected, all bets are off. That would mean that the Fed would have to continue to raise interest rates into a difficult economic backdrop. Stay tuned.
Have a nice evening everyone.
