As expected, the CPI number was rather hot. We saw prices in May rise by 5% which was even more than the expected 4.7%. But, as we noted yesterday, this “bad” news may not necessarily be bad for stocks, or bonds for that matter. One would expect the long bond to sell off (driving rates higher) but just the opposite occurred. The 10 year Treasury Note’s yield dropped to under 1.50% during the trading session. Stocks simply shrugged off the data and moved higher at the opening bell as well.
Although Stocks surrendered most of the gains, by the close, the Dow Jones Industrial Average was up 19 points to finish the day at 34,466. The S&P 500 was also up 19 points to close at 4,239. The Nasdaq Composite Index was up 108 points to close at 14,020. Gold was up $6 to trade at $1,901 per ounce, while oil was up $.21 to trade at $70.17 per barrel WTI.
Let’s see how the week finishes out tomorrow.
Have a nice evening everyone.