Okay, That’s Enough Rallying For Now
“The [consumer price index] is what spurred this rally. We lost a lot of the gains [to record highs] and now we’re getting them back.”
– Jim Herrick (subscription required), Head Trader, Robert W. Baird
The .1% is a little misleading as the real number was .1498% (see pg. 12, Table 2, CPI, Seasonally Adjusted, “Special Indexes”, “All items less food and energy) – which then gets rounded down to .1%. So I don’t know if the market got all excited thinking it was a great inflation number when it was just in line.
The yield on the 10 year is down nicely to 5.18%.
In other news, Goldman Sachs upgraded Intel from “Hold” to “Buy” giving the Dow component a nice boost today – up more than 3%. Less positively, oil has rallied above $68.
But at this point I think the market has rallied enough. We’ve recovered everything we lost in last week’s (Tue-Thu) interest rate rout and are flirting with the all time high on the Dow of 13,676 from a couple Monday’s ago (Mon 6/4/07) – with interest rates notably higher than they were then.
It looks like we are already experiencing some profit taking towards the end of the day.
Next week looks relatively uneventful as far as economic reports with alot more action coming the week of June 25.
Have a great weekend!!!!
UPDATE (Fri 10:30am PST): Here’s the chart that explains the last two weeks stock market action.