The S&P 500 gained 4%, the Dow added 2.6%, the NASDAQ jumped 6%, and the Russell 2000 increased by 4.4%. US Treasuries continued to rally across the yield curve. The 2-year yield fell by seven basis points to 3.58%, while the 10-year yield fell by six basis points to 3.65%. West Texas Intermediate crude prices increased by $1.00 on perhaps some supply concerns related to Hurricane Francine. Gold prices soared to new all-time highs and closed the week $86.00 higher at $2611.30 an Oz. Copper prices increased by $0.15 to close at $4.22 per Lb. The US Dollar index fell by 0.1% to 101.07.
The economic calendar was focused on the Consumer Price Index and the Producer Price Index. Headline CPI came in at 0.2%, in line with expectations, and was up 2.5% over the last year. Core CPI, which excludes food and energy, increased by 0.3% versus the consensus estimate of 0.2%. On a year-over-year basis, the core reading increased by 3.2%. Shelter costs continue to be sticky, rising 0.5% in August. Headline PPI came in at 0.2%, in line with the street estimate. PPI increased by 1.7% over the last year, down from 2.1% in July. Core PPI came in at 0.3%, slightly above the consensus estimate of 0.2%. On a year-over-year basis, the core figure increased by 2.4% in August, up from 2.3% in July. Initial Claims increased by 2k to 230k, while Continuing Claims increased by 5k to 1850k. A preliminary reading of the University of Michigan’s Consumer Sentiment Index came in better than expected at 69 versus the prior reading of 68.3.
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