Friends

As expected, there was no change in monetary policy today, as the Fed acknowledged that inflation is still well above target, but they want a little more time to see how their recent rate hike is playing out. It makes sense to expect another rate hike in December. But just like we do when earnings are released with stocks, we monitor what bonds do after a Fed announcement. Today the long end saw rates inch higher while the 2-year Treasury yield moved a little lower. Both moves make sense but we often see the opposite occur the next trading day. Stay tuned.

As for stocks, we get Microsoft and Google after the close today, but today’s action saw the market averages slightly higher. By the close the Dow Jones Industrial Average was up 97 points to finish the day at 52,475. The S&P 500 was up 21 points to close at 7,743. The Nasdaq Composite Index was up 72 points to close at 26,549.

We’ll see Google and Microsoft earnings in just a few minutes, and then tomorrow we get reports from Amazon, Mastercard, Intel, Merck, and Caterpillar. Then on Friday we get Exxon, Chevron, BP, and AbbVie. Still a lot of action ahead. Stay tuned.

Have a nice evening everyone.

Jim