Stock Market Update

[BRIEFING.COM] The major indices are locked in today, preserving gains in a workmanlike manner that is a byproduct of good economic data and prospects for more policy stimulus.

Those prospects will be the center of attention on Friday when the PCE Price Index for August is released as part of the Personal Income and Spending Report. The PCE Price Index is the Fed's preferred inflation gauge, and if it runs hotter than expected, there will be cries that the Fed moved too much too soon and risks reigniting inflation. Conversely, if it is in-line to weaker than expected, then the Fed will win some praise for cutting rates aggressively to keep the labor market in a good place.

The inflation worries have not fallen by the wayside. Since the Fed's move on September 18, the 10-yr note yield has risen 15 basis points to 3.79%, gold prices have risen 3.9% to $2,699.00/troy oz., and copper prices, goosed by China's own wave of stimulus measures, have popped 8.1% to $4.65/lb. To be fair, there has been some relief in oil and gasoline futures prices since the Fed's rate cut, but with China getting in on the stimulus act with other major central banks, commodity prices will be a focal point for inflation hawks.

Futures prices for metals, agricultural, and livestock futures have all gone up this week. Coincidentally, the S&P 500 materials sector is the best-performing sector this week with a 3.6% gain.