MARKETS TODAY
Sept 12 (Vica Partners) – Dow up .87%, S&P 500 up 1.00%, Nasdaq up .98%
Look for gains in equity prices today and Dollar correction into the Week, as Markets turn attention to Tuesdays CPI reports. Negative CPI is big win for markets this week, as analysts are expecting a negative month over month CPI which would be the first negative number since May 2020.
Following Fed hikes and reduction in inflation, the conversation will shift to earnings
Our teams looking at S&P 500 index averages asses that 2023 earnings will still need to be revised by another 7.5% which would reflect about 1% negative growth. Market Bears estimate more like 10 to 15% and their argument is based on more margin compression.
Week ahead should garner Index gains with improving CPI data
Expect CPI (year-on-year) Aug. to come in around 7.9%, down from last month’s 8.5%. Look for Core CPI (year-on-year) Aug., down 5.8% from 5.9% driven by lower cost gas and energy prices.
Investors are looking to get back in the market
Our data studies indicate that investors currently out of the market are looking to get back in the market. They believe that stocks that got hard hit at the beginning of the year are now priced correctly, as their valuations already reflect further rate hikes.
