In the aftermath of yesterday’s Fed meeting, stocks staged an impressive rally, aided by a strong leading indicators number and hope that the Greece situation might find a solution. Interestingly the CPI number was a little hotter than expected and the weekly jobless claims number continues to improve (both positives for Fed hawks). No, inflation is nowhere near where the Fed would like to see it, but it continues to creep in the right direction.
As for stocks, by the close the Dow Jones Industrial Average was up 180 points to finish the day at 18,115. The S&P 500 was up 20 points to close at 2121. Gold was up $25 to trade at $1202 per ounce, while oil was up $.48 to trade at $60.40 per barrel WTI.
Today’s rally was, indeed, impressive and somewhat unexpected. It seems that the take away from yesterday’s Fed meeting is that the doves (those who want to delay tightening) still rule the day on the FOMC. That would mean for the time being that all is still clear for stocks. Of course, the market this year has had amnesia from day to day, so let’s see what tomorrow brings before we work ourselves into a frenzy.
Have a nice evening everyone.