Morning Report – Inflation is running a little hotter than expected.5/22/15

Markets are lower after some hotter-than-expected inflation data. Bonds and MBS are down.

Bonds will close early today, at 2:00 pm EST. Stocks are open a full day.

The Consumer Price Index increased .1% in April, bang in line with expectations. Prices ex-food and energy rose .3% vs. the .2% forecast. On an annual basis, the CPI ex food and energy is up 1.8%.

Real Average Weekly Earnings rose 2.3% on an annualized basis in April.

Janet Yellen will be speaking at 1:00 pm EST. I can’t imagine she will say anything market moving an hour before the close on a 3-day weekend, but just be aware. Markets will become illiquid as the entire street will be on the L.I.E. by noon.

Short missive today, as there really isn’t much to talk about. Have a good Memorial Day Weekend.

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