Wall Street closes up, another weekly gain ahead of inflation data

The markets all started on a high, then took a dive immediately out the gate until about 11:30 when all three indexes started a recovery that went through close with the S&P and Nasdaq closing near flat, the Dow doing better with a respectable 3-digit gain. It might have been around that time that the Atlanta Fed prez made the statement acknowledging that the economy was slowing, though this was tempered by the Dallas Fed prez saying monetary policy might not yet be tight enough. 

Dow closes up to make it seven in a row, as jobs data boosts rate-cut hopes

It was another day straight up on all the indexes, the Dow up for a 7^th session in a row, as new claims for unemployment increased by 16,000 more than forecast and thus provided new optimism for rate cuts and today’s buying spree has brought the market to an almost full recovery from the recent downturn. The calming of the bond market has also helped boost stocks. Volume was 9.9 billion, same as yesterday, still below average. 

Stocks slip, dollar gains as market awaits inflation data

The Dow spent the whole day in the black, the S&P and Nasdaq on the other end. But all three took a jolt upwards at 1:30 which put the Dow nicely into 3-digits and the others near flat again. It was yet another “take-a-breath” day as concerns continue about inflation heating up and putting the brakes on rate cuts. The Boston Fed prez today saying the economy needs to continue to cool off didn’t help which is why all eyes now anxiously wait next Wednesday’s CPI data to see if we’re on course to reach the Fed’s 2% target. 

Wall St loses steam, dollar gains as investors mull rate cut timing

All three indexes were handsomely in the black until about 1:30, the Dow up some 125 points in the morning, then a dive in the afternoon to close near flat, the Nasdaq not so lucky going a little into the red. After four days of euphoria over Powell’s “unlikely” comment, this is being attributed to a “take a breath” day and profit-taking as the consensus remains that the Fed isn’t doing anything anytime soon.  

Global shares rally on rate cut hopes, yen weakens

The power of “unlikely.” That’s the singular word, actually spoken last Wednesday, that is responsible for the fourth consecutive day of furious buying as the markets become ever more hopeful over the potential for coming rate cuts. As today’s expert put it, “Powell told the market that a hike was unlikely. Those were his words – ‘unlikely’ – and they took that to mean that he wants to cut.” The inflation outlook is still uncertain but the market hopes rates are restrictive enough to slow the economy. It’s also hopeful that the ECB is more confident about rate cuts and believe euro zone inflation will reach their 2% target by mid-next year. Volume came in at 10 billion, still below the 4-week average. 

AAII: Reasons for Not Selling Stocks This May

Here is another contribution from this week's AAII.  All the cynics are insisting that the market is heading for a major correction.  This article argues that those selling now in anticipation of a downturn will be sorry.  Hope everyone had a great weekend.  

AAII: Winning the Battle Against Investment Fees and Biases

This brings back memories, all the time in our FastTrack study group ten years ago when we were talking about fees and biases in our transactions with our investment platforms.  Paul Merriman's article in this month AAII magazine, published this week, is all about it.  Enjoy.