Not Too Cold, Not Too Hot

On the economic data front, it was mostly a Goldilocks day. December's PPI was lower than expected. The NFIB survey of small business owners showed rising optimism and animal spirits. However, the Treasury reported that the federal budget deficit totaled a record $711 billion in the October-December period, up 39% from $510 billion in the same period a year ago.

The bears were still growling in the bond market and the stock market marked time awaiting tomorrow's December CPI report. The markets are likely to remain listless until Monday's Inauguration Day, when President Donald Trump is expected to issue numerous Executive Orders which might muddy rather than clarify the economic outlook.