Higher oil increasingly will creep into the indicators. Today, it biased the trade gap higher and pushed up import prices and also impeded the consumer sentiment number.

From his comments, it is clear that the US Fed will keep raising rates, hoping to bring the housing market to a very soft landing.

Growth was lower than expectations because of inventories -- which will need to be rebuilt -- while moderating employment costs will make it less costly for firms to hire additional workers. The still-strong level of wage and salary should buoy consumption.

We expect the recent jump in retail gasoline prices to push down confidence. Optimistic views around the labor market will likely offset some of the gasoline sticker shock.

We sold little oil today, since the buyers are waiting to see what will happen.

Oil continues to dominate trade, with crude at or near the highs. Worries remain about how high prices over the long term will impact consumer spending, the economy and interest rates.