Friends

Today’s PPI number came in better than expected, up .2% in December instead of the .4% that analysts had expected. Remember that the producer price index measures inflation at the wholesale level. Core PPI was flat. Tomorrow, we get the CPI number and analysts are expecting a .3% increase in December prices at the retail level. Stocks were all over the map today as rallies were sold while selloffs were bought.

By the close, the Dow Jones Industrial Average was up 221 points to finish the day at 42,518. The S&P 500 was up 6 points to close at 5,842. The Nasdaq Composite Index was down 43 points to close at 19,044. Gold was up $10 to trade at $2,688 per ounce, while oil was down $1.03 to trade at $77.79 per barrel WTI.

Remember, in addition to the CPI release tomorrow, we will see the beginning of earnings season this week as JP Morgan Chase, Citigroup, Wells Fargo and Goldman Sachs are scheduled to release their earnings reports tomorrow. Morgan Stanley and Bank of America will report on Thursday. I suspect we will continue to see volatility in the markets. Stay tuned.

Have a nice evening everyone.

Jim