Why stocks aren't down even more on Friday's hot inflation report

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Why aren't stocks down even more on Friday's hot inflation report? BobPisani explains.

"I don't think this has any bearing on what the Fed will do" next week, Megan Greene, chief economist at the Kroll Institute, said on CNBC's "Squawk Box" Friday morning. "I think peak inflation is probably behind us." The dollar, which has been in a notable downtrend for the last month, rallied initially, then fell back. Two and 10-year Treasury yields spiked modestly but are off their highs.

That's well above analyst consensus of a roughly 5% gain. Most traders seem to be expecting earnings to be flat at best. Many strategists are far more negative. Blackrock, in a pessimistic 2023 outlook, said "We find that earnings expectations don't yet price in even a mild recession." Overnight earnings were decent. Broadcom beat on top and bottom line thanks to strong demand.

 

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BobPisani Because the Democrats that are running financial companies like JPMorganAM will not sell peoples money and keep it safe from the inevitable downturn at the beginning of next year. Useless Inflation EconomicCollapse

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