Friends

This morning’s CPI data was a little better than expected. Both the headline and core numbers were a little lower than the June reading with the annual rate landing at 3.4% and the core 2.5%. Bonds rallied a bit on the news which gave a green light to stocks as the S&P and the Nasdaq inched higher.

By the close, the Dow Jones Industrial Average was down 21 points to finish the day at 53,770. The S&P 500 was up 20 points to close at 7,748. The Nasdaq Composite Index was up 143 points to close at 26,588. Gold was up $35 to trade at $4,476 per ounce, while oil was down $.10 to trade at $83.10 per barrel WTI.

The odds for a September rate hike by the Fed looks to be about 50/50 at the moment. Given today’s inflation data and last Friday's jobs data I would lean towards no rate hike in September. Of course, things can change over the coming weeks, but I think market participants should be pleased that along with a great corporate earnings picture, a hawkish Fed seems less likely for the moment. Let’s see how the rest of the week plays out.

Have a nice evening everyone.

Jim