As expected, the markets were very quiet today, despite semi-hawkish comments from Fed Chair Yellen and a little hotter than expected CPI number (the core is where the inflation is showing, and admittedly it’s not really that much). As unlikely as a June rate hike seems, Ms. Yellen made it clear that the Fed wants to at least begin the tightening process sometime this year (September seems most likely, but you never know). Perhaps the “better” inflation number combined with an unemployment rate around 5.5% will give the Fed the green light it seeks. The strength in the dollar today indicated that the currency traders are taking Ms. Yellen seriously.
As for today, by the close the Dow Jones Industrial Average was down 53 points to finish the day at 18,232. The S&P was down 4 points to close at 2126. Gold was up $1 to trade at $1204 per ounce, while oil was down $.85 to trade at $59.87 per barrel WTI.
After we get back from the 3 day weekend, we’ll have a busy week of economic data and Fed officials giving speeches. This week was one with almost no direction. Let’s see what next week has in store.
Remember, markets are closed on Monday. We’ll be back with you on Tuesday. Have a great Memorial Day weekend everyone and don’t forget the fine men and women who have served this country so honorably.