U.S. stock market ‘pretty expensive’ as investors parse inflation report in choppy trade

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U.S. stocks have been choppy Wednesday, as investors parse a consumer-price index report that showed inflation remains sticky despite some signs of easing.

“It was almost dead on the consensus,” said Liz Ann Sonders, chief investment strategist at Charles Schwab, in a phone interview. “It wasn’t a surprise in either direction.”“It was almost dead on the consensus,” said Liz Ann Sonders, chief investment strategist at Charles Schwab, in a phone interview. “It wasn’t a surprise in either direction.”

While investors may be encouraged by some signs of easing in the inflation report, the cost of living remains elevated. Some consumers may be thinking, “boy, this stuff is still expensive,” she said. While some investors are anticipating the Fed may need to cut rates later this year, she said that’s not necessarily good news for equities.

Digging into the CPI inflation report for March, some of the areas that stood out to Sonders included the year-or-year rise in airfares as well as the decline in fuel oil and gasoline over the past 12 months, she said. Sonders also pointed to owners’ equivalent rent moving up on a year-over-year basis, but easing a bit month over month.

 

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There will be lies told with the CPI report. Something like 'Inflation is softening, so now stocks can create a mirage of gains to benefit corporations.' Shit inflation is out of control, but stocks are up. Pfffffft

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