Markets were subdued Monday but stocks are up a bit premarket ahead of Wednesday’s big economic report: the latest Consumer Price index inflation data.
The market has already priced in a worse consensus year-over-year range, with the number expected to come in at 3.4% to 3.7%.
We know the number is going to be bad, but Fed Chair Jerome Powell will say food and energy prices will come down naturally. If the number is 3.7%, he might allude to a rate cut this year.
I don’t believe there will be a lot of trading action today ahead of this report, so I would be especially careful with day trading.
The big question to me is if financial stocks will start to rally ahead of Friday’s big earnings day, or if they’ll be subdued along with the market.
If rates stay elevated, it won’t affect financial stocks as much, so it will be interesting to see how the economy is treating these stocks.
Crude oil prices are humming along, and there’s an inverse correlation between the economy and energy prices, so that’s something to keep in mind. Commodities, meanwhile, have surged the past several weeks, and this is likely to keep the market from moving higher…
I’ll cover all that and more in this morning’s “Premarket Must Watch” video!
Roger Scott
Roger Scott Trading
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