Friends

There was a lot of data to absorb on this last day of the 3^rd quarter. A hot GDP number from the Atlanta Fed, a stronger than expected jobs number from ADP and a slightly better than expected PCE price index (Inflation) number. All of these numbers simply added fuel to the selloff in bonds as market participants are becoming more convinced that the Fed will pursue further tightening.

As for stocks, by the close the Dow Jones Industrial Average was down 443 points to finish the day at 50,906. The S&P 500 was down 19 points to close at 7,651. The Nasdaq Composite Index was up 63 points to close at 26,861. Gold was up $7 to trade at $4,186 per ounce, while oil was up $1.28 to trade at $90.66 per barrel WTI.

As mentioned, bond yields continued to rise with the 10-year Note trading at a yield of 5.29%. After a four-decade long bull market in bonds, many of today’s investors have never seen a bear market in bonds other than short term moves. It will be interesting to see how investors view asset allocation going forward. The 4^th quarter begins tomorrow. Time does fly.

Have a nice evening everyone.

Jim