Concerns Surface Over Recent Inflation Data

Yesterday was another solid day in the market, on a day when many thought we would see a pullback, options expiration hangover, etc. I include myself in that group. Nonetheless, the market closed higher, and volume rose on the Nasdaq.

That made for another accumulation day. And we have seen very few distribution days recently. Breadth was also solid, and the indexes were able to make new highs.

This morning, we are opening on a weak note, as today's inflation data is worrying investors. The core CPI rose +0.3% (+0.2% consensus), which pushed the year-over-year rate to +2.7%. This is slightly above the Fed's comfort zone of 2.5%.

But it is still possible that this report will be a one-off, and that inflation will still trend lower as the year unfolds. The 10-year yield is only up 2 basis points on the news, to 4.70%, which is still below its 50-day average.

I'll be back in a bit with some stock news--