Friends

This morning’s inflation data came in hotter than expected even when food and energy was excluded. This sent bond prices lower and yields higher. Stocks struggled from the start, but interestingly enough bond prices rallied as the trading session wore on, sending yields lower. Despite the drop in interest rates, stocks still remained in negative territory as the trading session came to a close.

For the day, the Dow Jones Industrial Average was down 48 points to close at 51,621. The S&P 500 was down 86 points to close at 7,718. The Nasdaq Composite Index was down 511 points to close at 26,692. Gold was down $55 to trade at $4,120 per ounce, while oil was up $1.03 to trade at $95.17 per barrel WTI.

This morning’s inflation data continues to put pressure on the Fed. Market participants are betting on a rate hike in December. Only the mid-terms might keep the Fed from moving at the end of this month. The markets will likely focus on earnings the next couple of weeks. The banks didn’t exactly get things off on the right foot. Let’s see how the rest of the week plays out.

Have a nice evening everyone.

Jim