CPI Report on Friday: Clearly the biggest issue for the market is inflation. The CPI report on Friday has the expectation of up 0.7% for the month of May versus April. As we have discussed repeatedly, what is driving inflation is the previous 2-years of extraordinary money supply growth and the component primarily responsible for a significant amount of the inflation impact to each category

of the inflation report indirectly is oil, gasoline prices, and natural gas.