Stocks continue to gain ground with the Dow up 65 points to 19,614. Trading volume was off a bit from the prior day’s level.
The Federal Reserve open market committee will meet next week and odds makers see a 95% chance of at least a quarter point rate hike happening. Maybe this is why bank stocks are recent market leaders. Phil Blancato, CEO of Ladenburg Thalman Asset Management on CNBC called the current market “the Trump trade” and said it shows the potential for a more pro-business economy. Robert Shiller, on the other hand, is urging caution saying that current metrics show an overbought market ripe for a fall. I would be a guru if I could just tell which guru is right.
Things in Europe continue to look like 10 miles of bad road. Last weekend it was the no vote for the Italian referendum and today it was comments by members of the Turkish parliament that they are desirous of getting back, from Greece, several islands in the Aegean Sea that long ago belonged to Turkey. These islands have been a sore point between the two nations for decades going back to 1923 and with opposition in Turkey swept away in response to the coup this issue might come to a head and risks pitting one NATO member against another NATO member and an EU member against a non EU member.
WTI crude prices were up 2% today and are back over $50 per barrel. Gold was off $4.60 an ounce to $1,179 as the ECB scaled back its bond buying program sending the euro lower against the dollar.