Inflation Still A Threat
Stocks rose on the good news about the financial sector (What good news??) Bond interest rates fell on the same news.
Oil, gasoline and gold fell back to yesterday’s starting levels, that’s fun. So, more sideways movement.
The Dollar gained ground again moving strongly against most currencies, especially the Euro. Europe is seen as not being proactive to stop the recession starting to spread across Europe – and that gives strength (relatively) to the Dollar.
In the news today….
CPI rose 0.8% in July. This is big news. Remember that CPI rose 1.1% in June. This sets the two months in a row to be an increase of 5.6% over last year’s prices. This is a huge jump over the 4% the FED was planning on earlier this year, and shows that inflation is a real threat to the US economy as well as the recession we find ourselves in.
Here are Today’s numbers:
Dow Jones 30 Industrial – 11,622 (up 89 points)
10 Year Treasury Bond – 3.89% (down 0.06%)
Euro – $1.4809
Gold – $815 (down $17)
Oil – $115.01 (down $0.99)
Gasoline – $2.91 (down $0.02)
