COMMENTARY | COLUMNISTS | GEORGE CHAMBERLIN

George Chamberlin's Money in the Morning

The October rally continues. Much to the disappointment of the permabears, CBNC, MarketWatch.com and others hoping for a stock market crash, the Dow industrials rang up their sixth consecutive winning session on Friday and posted the biggest weekly gain, 3.6 percent, since December of last year.

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The uncertainty about if and when the Fed may raise interest rates continues. We'll get more information this week on the state of the economy with the release Wednesday of the closely watched retail sales report for September. Since Labor Day fell later in September, it is expected there will be a boost in activity despite lower gasoline prices. Also out this week will be the important producer and consumer price reports. The Fed has repeatedly said it is pleased with the condition of the job market but needs to see some evidence of inflation before tightening. It is doubtful these reports will give them what they are looking for as the continued decline in prices at the pump will once again keep the lid on prices.

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By the way, this week's release of the consumer price index will be very important. It will be used to calculate the cost of living adjustments for people receiving Social Security benefits or other entitlements. It is looking very likely there will be no adjustment in benefits for 2016.

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Shares of Eli Lilly are down more than 8 percent this morning after the drug company announced it will stop development of a drug to treat cardiovascular disease and prevent heart attacks. Clinical trials to test the effectiveness of the treatment were not successful and Lilly decided to cut its losses.

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Moving higher this morning are shares of EMC, the large software and networking company. It was announced that privately held Dell would buy the company for $67 billion, the biggest tech takeover in history.

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Oil prices have been moving slightly higher of late, briefly topping $50 a barrel last week. Now comes word from OPEC that it is forecasting oil output in 2016 will decline for the first time in eight years. Of course, OPEC never cuts production so they assume most of the slowdown will be from domestic producers in the United States, where the locations to store oil are filled to capacity.

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Big deal at the Q tonight as the Chargers host the Pittsburgh Steelers in a Monday Night football game. The Bolts are favored by 3 but the boys from Steel City are always a handful, even without Big Ben.

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