Friends

Oil prices eased off just a little bit which helped stocks get a breather. This week’s inflation data was hot enough to raise expectations of a rate hike from the Fed next week. Analysts now expect a quarter point hike next week and then another quarter point hike in December. The bond market has already priced in those hikes in my opinion as the 2-year Treasury Bill is trading at a yield of more than 4.65%, a full point higher than the Fed Funds rate. So, it will be interesting to see how markets would react to a rate hike next week. Stay tuned.

As for stocks, by the close the Dow Jones Industrial Average was up 509 points to finish the day at 52,573. The S&P 500 was up 65 points to close at 7,656. The Nasdaq Composite Index was up 251 points to close at 26,333. Gold was down $18 to trade at $4,388 per ounce, while oil was down $1.82 to trade at $100.66 per barrel WTI.

Inflation, oil prices, and bond yields continue to provide headwinds for stocks. Let’s see how next week plays out.

Have a great weekend everyone.

Jim