Stocks set for make or break moment this earnings season: Fundstrat

But in reality, it's inflation that's breaking, Lee said, a fact that could become clearer in the case of strong corporate earnings for the first quarter.

"It may be that 1Q2023 earnings season could act as the final 'capitulation' of the bearish view," he added, predicting stocks could see the strongest rally of the year in April. Previously, he's predicted theHis bearish view runs counter to many others on Wall Street, with earnings expectations falling for the past six months and analysts warning that high inflation could drag corporate earnings.

The core Personal Consumption Expenditures index – the Fed's preferred inflation gauge, which excludes more volatile food and energy prices – rose just 0.3% in February, cooler than the expected 0.4% increase. Meanwhile,, which also excludes housing prices, fell to 3.3% in March, the measure's lowest level since July 2022.

The labor market is also starting to soften. Job openings fell to 9.9 million in February, lower than the expected 10.5 million, Lee pointed, another sign that the economy is starting to shrink from Fed policy. Wednesday private payroll data for March showed hiring slowed last month, the latest sign that the job market is decelerating after a year of policy tightening by the Federal Reserve.

Fed officials have hiked interest rates over 1,700% in the past year to lower high prices, but dwindling inflation indicators suggest the central bank is running out of reasons to keep tightening the screws on the economy, Lee said.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The stock market will see strongest gains of the year in April: FundstratThe stock market is gearing up for its strongest 4 weeks of the year as another signal suggests the US banking crisis is over
Source: BusinessInsider - 🏆 729. / 51 Read more »

European stocks head for higher open, brushing off concerns over oil marketsEuropean markets are heading for a higher open Tuesday, brushing off concerns over oil price rises following a surprise production cut by the OPEC+ alliance. Open cutting another 1,6 million barrels 😅
Source: CNBC - 🏆 12. / 72 Read more »

Asia stocks wobble as OPEC+ output cuts, weak US data raise uncertaintyAsian stocks dithered on Tuesday as investors grappled with inflation concerns in the wake of the surprise cuts to the OPEC+ group's oil output targets, while treasury yields retreated after frail U.S. manufacturing sector data. But US stocks going to Mars I'm ready, burn it all down
Source: Reuters - 🏆 2. / 97 Read more »

Stock market news: Oil stocks rally as crude prices rocket upUS stocks end mixed as energy sector rides surge in oil prices while tech stocks fall
Source: BusinessInsider - 🏆 729. / 51 Read more »

If it's the start of a new bull market, CFOs aren't buying itChief financial officers surveyed by CNBC remain cautious on the Dow and economy for the rest of 2023 even as stocks rally and tech stocks enter a bull market. FrankCNBC Can you please show some episode of legendary story teller and musk competitor for presidency , the great cathy wooods? I want to hear some new and exciting science fiction short stories.
Source: CNBC - 🏆 12. / 72 Read more »

Oppenheimer says a rally is coming for renewable stocks, gives its top picksThe Wall Street firm is predicting better-than-feared sales levels for renewable energy companies and sees big upside for several stocks. A rally? Why because there will be a massive subsidy? “And now I am become death— the destroyer of Markets.”
Source: CNBC - 🏆 12. / 72 Read more »