Friends

Stocks got off to a lousy start for the week as Mid East tensions and higher oil prices provided a difficult backdrop for market participants. The longer end of the yield curve continues to inch higher steepening the yield curve as a whole. Will higher longer-term interest rates become a problem for stocks at some point?

As for today, by the close the Dow Jones Industrial Average was down 272 points to finish the day at 53,459. The S&P 500 was down 40 points to close at 7,745. The Nasdaq Composite Index was down 84 points to close at 26,644. Gold was up $34 to trade at $4,472 per ounce, while oil was up $1.99 to trade at $84.39 per barrel WTI.

Higher oil prices and higher interest rates are headwinds for stocks. Great earnings and moderating inflation are tailwinds. Let’s see how this plays out this week. Stay tuned.

Have a nice evening everyone.

Jim