Stocks Up On Friday, Lower For The Week, Two Inflation Reports On Deck For This Week  Image: Bigstock Stocks closed mostly higher on Friday, except for the Nasdaq. But they were all down for the week. For context, the Dow has closed higher in 3 out of the last 6 weeks. YTD they are up 2.18%. The S&P has closed higher in 4 out of the last 6 weeks. YTD they are up 6.54%. The Nasdaq has closed higher in 5 out of the last 6 weeks. YTD they are up 11.96%. And the Russell 2000 has closed higher in 4 out of the last 6 weeks. YTD they are up 8.95%. Disappointing to see the lower close last week. But it's been a great start to the year. Friday's Consumer Sentiment Index ticked up to 66.4 from last month's 64.9 and views for 65. No doubt the declines in inflation and this year's stock market gains have lifted sentiment. Earnings season continues this week with another 262 companies on deck to report today. All in all we'll hear from a total of 841 companies this week. And another 872 next week. With the next FOMC meeting not until March 21-22, there will be plenty of speculation leading up to it on how high the Fed raises rates next month, and how high they may ultimately go. And since the Fed has stated that their decisions will be data dependent, every inflation report between now and then, every economic report, and the next Employment Situation report, will hold even greater significance. Regarding inflation, we'll get our next look at the Consumer Price Index (CPI) on Tuesday (tomorrow), 2/14.
Then on Thursday, 2/16, we'll get the Producer Price Index (PPI).
And then next week on Friday, 2/24, we'll get the Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) index. With inflation trending lower over the last 6 months (headline CPI was as high as 9.1% in July of last year vs. last month's 6.5%), there's plenty of excitement that the Fed may not have to raise rates as high as they've forecasted (terminal rate of 5.10%). But that's why the next few inflation reports will be so closely watched. If any of those reports tick up, that could throw a wrench into the narrative of a lower than expected terminal rate. But if inflation keeping ticking lower, that's good news for the economy and the markets. So buckle up, because the next few weeks should be quite busy. See you tomorrow,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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