Fed Minutes Help Stocks Recover

Friends

The FOMC minutes were released this afternoon from last month’s meeting, and despite the urging of a few of the hawks on the committee to raise rates now, and actually a couple of the voting members, it was apparent that the doves (the majority) were having none of it. Citing concerns over global growth and the lack of inflation domestically, it appears that the doves (those who favor accommodation – still want rates to remain where they are, at the very least), still rule the roost and of course the Fed Chair is the chief dove.

Stocks finally bounced after a couple of days of selling/lack of buying, but volatility remains subdued and it still appears that traders are waiting to see how earnings season unfolds. For the day, the Dow Jones Industrial Average was up 112 points to close at 17,716. The S&P 500 was up 21 point to finish the day at 2066. Gold was down $7 to trade at $1,222 per ounce, while oil was up $1.79 to trade at $37.68 per barrel WTI.

We recovered most of yesterday’s losses today, so it will be interesting to see if the bulls are a little more emboldened as the rest of the week unfolds. The Fed still seems to be mainly in the dovish camp, which should keep the dollar at bay, and as we saw today, give a boost to oil prices. Stay tuned.

Have a nice evening everyone.

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