Friends

Economic data continues to be all over the place with today’s ADP private payroll number much weaker than expected. On the other hand, last week’s jobs opening number was stronger than expected. The Fed’s beige book report showed growth slowing with prices rising, but recent CPI numbers showed a better inflation environment. It’s no wonder that market participants are basically tuning it all out and buying stocks that have been strong recently and ignoring those that haven’t. The result is that we are seeing the market averages continue to defy the bears, pushing back towards the all-time highs.

As for today, by the close the Dow Jones Industrial Average was down 91 points to finish the day at 42,427. The S&P 500 was up a fraction to close at 5,970. The Nasdaq Composite Index was up 61 points to close at 19,460. Gold was up $20 to trade at $3,397 per ounce, while oil was down $.54 to trade at $62.87 per barrel WTI.

Today’s weak ADP number brings into question Friday’s non-farm payroll number. I would guess that if that number is weak the President will bring the heavy artillery for Fed Chair Powell, demanding that he begin to lower interest rates (the Fed Funds rate). Unfortunately, the Fed’s data is suggesting that inflation may tick up soon, which would preclude them from doing anything on rates. Friday should be an interesting trading session. Stay tuned.

Have a nice evening everyone.