The S&P 500 made it two straight down weeks, closing at an August low of 4464. After a nice pop on Monday, the S&P 500 closed above that century psychological level of 4500. Mid-week was calm, but before Thursdays open the annual Consumer Price Index (CPI) came out at 3.2%, softer than the expected 3.3%. Before Fridays open, the July Producer Price Index (PPI) rose 0.3%, more than the expected 0.2%. These two numbers essentially cancelled each other out, but the 10 Year Treasury did rise to 4.17%, almost a new Year To Date high. Next week is consumer week with the retail sales report and major retail stores reporting earnings. From a technical perspective, we continue to consolidate in a S&P 500 range between 4385 and 4607. Fridays close of 4464 is about the mid-point of that range, and not too far away from a month ago when we closed at 4439 on 11 July. The Bollinger Band Index, which measures volatility, also stands at a low reading of 35. With the majority of earnings season over and the next CPI/PPI numbers a month away, theres not much to drive the market until the next Fed meeting on 19/20 September. For TSP TIPS we took some money off the table on Monday, and our current investment mix still looks good. As such, we recommend no changes this week.
The S&P 500 made it two straight down weeks, closing at an August low of 4464. After a nice pop on Monday, the S&P 500 closed above that century psychological level of 4500. Mid-week was calm, but before Thursdays open the annual Consumer Price Index (CPI) came out at 3.2%, softer than the expected 3.3%. Before Fridays open, the July Producer Price Index (PPI) rose 0.3%, more than the expected 0.2%. These two numbers essentially cancelled each other out, but the 10 Year Treasury did rise to 4.17%, almost a new Year To Date high. Next week is consumer week with the retail sales report and major retail stores reporting earnings. From a technical perspective, we continue to consolidate in a S&P 500 range between 4385 and 4607. Fridays close of 4464 is about the mid-point of that range, and not too far away from a month ago when we closed at 4439 on 11 July. The Bollinger Band Index, which measures volatility, also stands at a low reading of 35. With the majority of earnings season over and the next CPI/PPI numbers a month away, theres not much to drive the market until the next Fed meeting on 19/20 September. For TSP TIPS we took some money off the table on Monday, and our current investment mix still looks good. As such, we recommend no changes this week.