Was Yesterday’s CPI Another Bullish Catalyst?
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What’s in Today’s Report:
- Was Yesterday’s CPI Another Bullish Catalyst?
- Can the Rotation Out of Tech and Into the “Rest” of the Market Continue?
Futures are flat following a quiet night of news as investors digested the CPI report and rotation out of tech.
Politically, Biden’s press conference performance is pushing back, for now, on moves to replace him as candidate.
Economically, there was no notable data overnight.
Today focus will stay on inflation as we get PPI (E: 0.1% m/m, 2.3% y/y) and the 1-Yr Inflation Expectations (E: 3.0%) and 5-Yr. Inflation Expectations (E: 3.0%) in the University of Michigan Consumer Sentiment Survey. As we saw yesterday with the CPI report, the better the inflation data, the stronger the tailwind on stocks (especially the “rest” of the market, meaning away from tech).
Earnings season also unofficially begins today with big bank earnings and results we’re watching include: JPM ($4.19), WFC ($1.27), C ($1.40), BK ($1.43), FAST ($0.51).
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