This morning, we got the latest read on the consumer.  CPI (Consumer Price Index) increased 0.2% in August.  Less food and energy, CPI was 0.3% higher, the largest rise since February.  Shelter, medical, motor vehicle insurance, apparel, communication, and tobacco indexes all increased while used cars and trucks, household furnishings and operations, recreation, and airline fares declined.  The energy and food indexes were both unchanged in August.

Consumer sentiment in September was flat at 89.5, below expectations of an uptick to 90.5.  Future expectations increased a bit, as near term and long term inflation expectations declined.  This was one of the reasons that Lael Brainard, Fed Governor, maintained her dovish tone.  According to Richard Curtin, the surveys of consumers chief economist “Small and offsetting changes have taken place in the third quarter 2016 surveys: modest gains in the outlook for the national economy have been offset by small declines in income prospects as well as buying plans.”

While the markets are all solidly in the red today, stock market gains, as well as the rise in home prices, helped raise household net worth by over $1 trillion, to $89.06 trillion, in the second quarter. 

Oil prices are down, as crude sinks to a 2-week low.  WTI is trading below $43 and some say it could be headed back down to the $30’s as glut concerns continue.  Financials, Energy, Industrials, Consumer Staples, Telecom Services are all weak today, with utilities being the lone bright spot.  Adding pressure to the financial sector is news that the DoJ has proposed that Deutsche Bank (DB) pay $14b in fine to settle its mortgage securities probe. DB plans to fight that.   On the NYSE, 1973 stocks decline outpacing advancers of 599, while on the Nasdaq, 1491 decline to 1258 advance

Today is quadruple witching and could add a bit of volatility into the close, although most traders have already rolled their positions.