Yesterday's EIA number came in stronger than expected showing a build-up of +6.087M barrels on top of last weeks build of +5.472M. That and the continued impasse in congress were enough to keep crude on the defensive. Oil settled down -1.88 at 101.61. The S&P settled off only -1.60 buoyed by softer rhetoric out of Washington and the official nod for Janet Yellen to take over as Fed Chief.
Initial Claims Forecast 316K Prior 308K
Today the markets will keep watching to see if the kids in congress can reach a short term agreement on a stop gap borrowing limit increase. With the Yellen nomination official and the continued squabbling in congress any likelihood of tapering has fallen of the radar for the moment. It seems that the kids are aware that the markets can punish if the debt ceiling isn't taken seriously. There's been a good amount of restraint from market participants on the belief that cooler heads will prevail but congress knows from recent history that a standoff one day too long is a market gone wrong. Trade wisely.