Stocks Down As Inflation Remains At 40-Year Highs Image: Bigstock Stocks closed lower yesterday, giving up earlier gains. Yesterday's Consumer Price Index (CPI) came in at 1.2% m/m vs. views for 1.1%. On a y/y basis, it was up 8.5% vs. the consensus for 8.4% and last month's 7.9%. Ex-food and energy, those numbers were 0.3% m/m (vs. views for 0.5%), and 6.5% y/y (vs. views for 6.6% and last month's 6.4%). All in all, the report was not as bad as some had feared. But with inflation still at more than a 40-year high, it's bad enough. Some have been speculating that this report could very well prove to be the 'high-water mark' for inflation. We won't know that until at least next month's report. But in the meantime, we can track the prices of goods to give us some indication of where things are headed. In other news, the NFIB Small Business Optimism Index came in a bit under expectations at 93.2 vs. the consensus for 95.0 and last month's print of 95.7. Today we'll get MBA Mortgage Applications, the PPI-Final Demand report, the Atlanta Fed Business Inflation Expectations, and the EIA Petroleum Status report. And we'll get more earnings. There's only another 56 companies on deck between today and tomorrow, with the market being closed on Friday for Good Friday. But that number increases to 295 next week. And 962 the week after that. In the meantime, the market will see if it can regroup over the next 2 trading days. See you tomorrow, Kevin Matras Executive Vice President, Zacks Investment Research |
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