The market edged higher once again yesterday after the latest update on inflation came in almost exactly as economists expected.‍

The Dow ended up 242 to 40,008 to finish a day above the 40,000 level for the first time in nearly two weeks. It was led mainly by strength in financials such as AXP, GS, JPM, TRV in addition to UNH.

In another astounding upside day, the market exploded to the upside yesterday with its third-best performance of the year as the July P.P.I. report came in better than expected, which should motivate the Federal Reserve to accelerate its interest rate lowering situation.

The Dow jumped by 408 points to 39,765 led by gains in AAPL, MSFT, UNH and GS as only the energy components sold off. The S&P made a huge gain of 90 to 5434 as the large technology stocks finally all got their act together in a day reminiscent of the first part of the year, when their strong gains led the S&P to 34 all-time highs.

In a session that showed fairly limited final results in the major indices, the market seemed a little quiet after the tremendous volatility from last week.

The Dow, after a higher start, ended lower by 140 down to 39,357 with pressure coming from selling in BA which is going nowhere, GS after its run to all-time highs, HD ahead of its earnings this morning (which were negative) and PG, which has been sort of steady for months now.

Well, well, well – after the 13% downside correction for NVDA, it finally got its act together yesterday and made a nice upside recovery yesterday on huge volume of 400 million shares.

This led to a reversal of the recent pattern where the Dow gained strongly for three sessions while the Nasdaq and S&P got sold off to narrow what had been the historic separation between these items as already mentioned in prior emails.