From Ken Little,
Your Guide to Stocks.
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Some good news is just so good it smothers even record-breaking bad news. Take the case of minutes from the last Fed meeting that indicate a real possibility that the interest rate increases may end soon.

When the markets got wind of that, they took off with strong gains despite hearing that oil was closing at record high of over $71 per barrel.

It is hard to see where the markets got so much energy from the Fed notes, but sometimes buyers want to buy and all they need is a plausible excuse.

We are right in the middle of an important earnings week and so far, they have been impressive with few major disappointments.

Investors may be betting upcoming earnings reports will continue strong and, now the inflation worries have eased somewhat, the markets will have some room to move up.

On the other hand, investors shouldn’t ignore record-setting prices for oil, especially with the situation in the Middle East growing tenser by the day.

Will reason return to the markets? Probably, but if the Fed holds tight and oil prices don’t push the inflation panic button, what looked to be a slow summer could turn more exciting for traders.