The Closing Look

Stocks rallied on Monday as investors digested the latest round of economic data and last week’s Fed symposium in Jackson Hole. Consumer spending edged higher by +0.3% in July which matched the Street’s consensus. Meanwhile, the personal consumption expenditures (PCE) price index, which is one of the Fed’s preferred inflation indicators, rose 0.1% in July and is up 1.6% over the 12 months through July. That is still shy of the Fed’s 2% forecast. Elsewhere, the Dallas Fed Manufacturing General Activity Index fell to -6.2, lower than the last reading of -1.3.

Gary’s Thoughts: $200 billion of printed money/month insuring markets here and around the globe. Yes…just between Japan and Europe $200 billion/month. This does not include others, 0% rates and the $15 trillion of negative rates! Good day yesterday. Lots of stocks setting up in tight action…just like the indices.