US Equities Markets Optimistic After Fed Meeting Minutes, Bunds Fall 8.20.14

For a third day in a row, US equities rose as the minutes for the Fed's meeting on July 29-30th were made public. The market is approaching a record high of the S&P 500 from July 24th of 1987.98. (at time of writing it is 1986.51)

The S&P 500 has experienced a 4 percent rally starting in the first week of August, USD rose to an 11-month high against EUR. The price of Oil rose, contrasting with the past three sessions. Gold is down to a 2-week low.

Michael Gapen of Barclays Capital says the Fed "still sees labor markets as far from normalized and is prepared to remain patient."

The bottom line is that although the Fed recognizes and is happy about the recent improvements in the economy, the data doesn't warrant an increase in rates unless there is additionally impressive growth and development.