Dow advances as traders eye looming inflation data and earnings

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Dow posts triple-digit gain with inflation data and earnings reports on horizon

U.S. stock indexes traded slightly higher on Tuesday as traders cautiously looked ahead to March’s inflation data that could determine the Federal Reserve’s next interest-rate decision, as well as the kickoff to the corporate earnings reporting season, with the banking sector in the vanguard.

The March employment report released last Friday showed a steady pace of job creation but with no great sign of accelerating wage inflation, news that helped calm fears of a sharp economic slowdown and faster Fed interest rate hikes.But now attention turns to the U.S. CPI report due Wednesday, which is seen as one of the last key data points before the Federal Reserve’s next interest-rate move.

Seema Shah, chief global strategist at Principal Asset Management, expects the decline in inflation in 2023 will likely be “incomplete with inflation remaining above central bank targets,” complicating its policy decisions. The U.S. and global economies are likely to struggle to grow over the next few years as countries fight to reduce high inflation and cope with rising interest rates, the International Monetary Fund said Tuesday.

Then, on Friday, the first-quarter corporate earnings season kicks into gear with the financial sector in the vanguard.

 

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Triple digit manipulation. Should be a crime.

Triple digit gains mean nothing these days....

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