Better Market Tone to Close the Week

All of a sudden, stocks and bonds are in rally mode

Highlights

• Recent corporate guidance from JetBlue, Micron and CarMax paints a picture of a slowing demand — challenging the “resilient consumer” story

• The rise in oil prices is all about supply: other commodities (base metals and the food complex) are in deflation mode

• No matter how you slice it, Canada looks like it is in recession, and it is time for the BoC to hit the brakes

• The Beige Book shows high inflation concerns to be in the rearview mirror, providing no evidence of a need for more tightening