Earnings bolster US stocks but crucial inflation report looms

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What's different a year after the wildfires? | SaltWire #novascotia #firefighting #wildfires #newsNEW YORK - A strong earnings season and blockbuster reports from tech industry titans fueled a U.S. stock market rebound from the first real swoon of 2024. Next week’s inflation data could determine whether the good vibes continue.

Strong earnings have “got investors feeling more comfortable about being in this market," said Art Hogan, chief market strategist at B Riley Wealth. However, “the trajectory of inflation is always going to be important to us while we're in a cycle where we expect the next thing for the Fed to do is to cut rates."

“If the CPI report comes in hotter, it's going to likely price out any rate cuts for 2024,” said Matthew Miskin, co-chief investment strategist with John Hancock Investment Management. “You may actually have to start talking about policy that's more restrictive if is too hot relative to expectations."For now, bullish investors have gained confidence from a solid earnings season.

With Nvidia the last of the group to report, on May 22, Magnificent Seven quarterly earnings are on track to jump 49.4%, according to Tajinder Dhillon, senior research analyst at LSEG.

 

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