Stocks Soared Yesterday, All Eyes On Today's Inflation Report  Image: Bigstock Stocks soared yesterday with the Nasdaq leading the way with 1.76%, followed by the S&P with 1.28%. So far, 2023 is off to a rousing start. A resilient economy (Q4 GDP is expected to come in at 4.1%), while inflation readings have all been easing (that's true for the CPI, PPI, and PCE repots). That's also true for the latest Employment report which showed more job gains than expected, but lower wage inflation than expected. The S&P, as a result, is already up by more than 3.3%, and we're only in week 2 of the new year. Today we'll get another look at the CPI (Consumer Price Index) inflation report. The consensus is calling for a flat m/m reading of 0.0%, and a 6.6% y/y change. Ex-food & energy, views are for 0.3% m/m and 5.7% y/y. Last month's report put the headline rate at 7.1% y/y, with the core rate at 6.0%. And the summer highs saw the headline number at 9.1%, with the core at 6.5%. Another report showing CPI on the decline should be cheered by the market. We'll also get Weekly Jobless Claims. And we'll get more earnings as earnings season has already unofficially begun. The big names due out today include Taiwan Semiconductor and Infosys. Then on Friday, we'll get financial heavyweights like Bank of America, JPMorgan Chase, Citigroup, Wells Fargo, and Blackrock, along with Delta Airlines, and health care giant UnitedHealth Group.
Since stocks typically go up during earnings season, there's plenty of excitement in the market right now. And it's not uncommon for individual stocks to move 10%, 15%, even 20% or more in one day after an earnings report. But you need to know what to look for to get into the right stocks. If you want to learn how to potentially find big winners this earnings season BEFORE they report, be sure to read our latest commentary... How to Find Big Winners This Earnings Season Best,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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