Stocks rallied and bonds sold off today. Is that a signal that market participants think the Fed is ready to move on Thursday? Heck, is it a sign that market participants don’t think the Fed can move on Thursday? I suppose you can read into the moves whatever you want to at this point. Until we get the answer on Thursday, it all is just a guess, isn’t it? It will be fascinating to see how markets react, whatever the Fed chooses to do.
As for today, the Dow Jones Industrial Average was up 228 points to close at 16,599. The S&P 500 was up 25 points to finish the day at 1978. Gold was down $3 to trade at $1104 per ounce, while oil was up $.65 to trade at $44.65 per barrel WTI.
On the economic front, the all-important retail sales report was mostly positive in nature, while industrial production was weak. Business inventories were slightly problematic but as expected, while the Empire State manufacturing number was downright awful. Once again a mixed bag, which really won’t help Fed officials as the FOMC meeting is convened. Traders are trying to front run Thursday’s decision, but they do so at their own peril.
Have a nice evening everyone.