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\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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By subscribing, you agree with our privacy and terms.

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\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Joseph Kalish, chief global macro strategist at Ned Davis Research (NDR), forecasts that there will be only one Federal Reserve rate cut this year, which certainly poses a risk for the US economy. This situation could negatively affect stock prices, and it is also important to mention that high interest rates make fixed-income investments, such as bonds, more attractive compared to stocks. As a result, investors may shift their money away from stocks, leading to a decrease in stock prices.<\/p>\n","post_title":"The S&P 500 And Nasdaq Indexes Closed At Record Highs This Tuesday.\u00a0 What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-sp-500-and-nasdaq-indexes-closed-at-record-highs-this-tuesday-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-06-20 22:35:56","post_modified_gmt":"2024-06-20 12:35:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17450","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

\"The data suggest an economy with demand and supply coming into better balance, as required to restore price stability. However, this process may just take more time than previously thought. It is too soon to determine whether inflation is durably on a path back to the 2% target.\"<\/em><\/p>\n\n\n\n

Joseph Kalish, chief global macro strategist at Ned Davis Research (NDR), forecasts that there will be only one Federal Reserve rate cut this year, which certainly poses a risk for the US economy. This situation could negatively affect stock prices, and it is also important to mention that high interest rates make fixed-income investments, such as bonds, more attractive compared to stocks. As a result, investors may shift their money away from stocks, leading to a decrease in stock prices.<\/p>\n","post_title":"The S&P 500 And Nasdaq Indexes Closed At Record Highs This Tuesday.\u00a0 What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-sp-500-and-nasdaq-indexes-closed-at-record-highs-this-tuesday-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-06-20 22:35:56","post_modified_gmt":"2024-06-20 12:35:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17450","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

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ADVERTISEMENT
\n

Another positive information is that US industrial production rose more than expected in May as manufacturing output returned to growth after two months of declines. However, Boston Fed President Susan Collins said this week that even though recent inflation data has been \"encouraging,\" the process of lowering inflation may take longer than expected. Boston Fed President Susan Collins said :<\/p>\n\n\n\n

\"The data suggest an economy with demand and supply coming into better balance, as required to restore price stability. However, this process may just take more time than previously thought. It is too soon to determine whether inflation is durably on a path back to the 2% target.\"<\/em><\/p>\n\n\n\n

Joseph Kalish, chief global macro strategist at Ned Davis Research (NDR), forecasts that there will be only one Federal Reserve rate cut this year, which certainly poses a risk for the US economy. This situation could negatively affect stock prices, and it is also important to mention that high interest rates make fixed-income investments, such as bonds, more attractive compared to stocks. As a result, investors may shift their money away from stocks, leading to a decrease in stock prices.<\/p>\n","post_title":"The S&P 500 And Nasdaq Indexes Closed At Record Highs This Tuesday.\u00a0 What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-sp-500-and-nasdaq-indexes-closed-at-record-highs-this-tuesday-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-06-20 22:35:56","post_modified_gmt":"2024-06-20 12:35:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17450","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Robust earnings growth has fueled the US stocks and positive Q1 earnings results provide further support to the ongoing bullish view, even as we navigate the Fed and underlying economic conditions. The US economy remains resilient and regarding the latest economic news, retail sales in the US edged up 0.1% last month following April's downwardly revised 0.2% decline.<\/p>\n\n\n\n

Another positive information is that US industrial production rose more than expected in May as manufacturing output returned to growth after two months of declines. However, Boston Fed President Susan Collins said this week that even though recent inflation data has been \"encouraging,\" the process of lowering inflation may take longer than expected. Boston Fed President Susan Collins said :<\/p>\n\n\n\n

\"The data suggest an economy with demand and supply coming into better balance, as required to restore price stability. However, this process may just take more time than previously thought. It is too soon to determine whether inflation is durably on a path back to the 2% target.\"<\/em><\/p>\n\n\n\n

Joseph Kalish, chief global macro strategist at Ned Davis Research (NDR), forecasts that there will be only one Federal Reserve rate cut this year, which certainly poses a risk for the US economy. This situation could negatively affect stock prices, and it is also important to mention that high interest rates make fixed-income investments, such as bonds, more attractive compared to stocks. As a result, investors may shift their money away from stocks, leading to a decrease in stock prices.<\/p>\n","post_title":"The S&P 500 And Nasdaq Indexes Closed At Record Highs This Tuesday.\u00a0 What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-sp-500-and-nasdaq-indexes-closed-at-record-highs-this-tuesday-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-06-20 22:35:56","post_modified_gmt":"2024-06-20 12:35:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17450","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Earnings Growth And US Stocks <\/h2>\n\n\n\n

Robust earnings growth has fueled the US stocks and positive Q1 earnings results provide further support to the ongoing bullish view, even as we navigate the Fed and underlying economic conditions. The US economy remains resilient and regarding the latest economic news, retail sales in the US edged up 0.1% last month following April's downwardly revised 0.2% decline.<\/p>\n\n\n\n

Another positive information is that US industrial production rose more than expected in May as manufacturing output returned to growth after two months of declines. However, Boston Fed President Susan Collins said this week that even though recent inflation data has been \"encouraging,\" the process of lowering inflation may take longer than expected. Boston Fed President Susan Collins said :<\/p>\n\n\n\n

\"The data suggest an economy with demand and supply coming into better balance, as required to restore price stability. However, this process may just take more time than previously thought. It is too soon to determine whether inflation is durably on a path back to the 2% target.\"<\/em><\/p>\n\n\n\n

Joseph Kalish, chief global macro strategist at Ned Davis Research (NDR), forecasts that there will be only one Federal Reserve rate cut this year, which certainly poses a risk for the US economy. This situation could negatively affect stock prices, and it is also important to mention that high interest rates make fixed-income investments, such as bonds, more attractive compared to stocks. As a result, investors may shift their money away from stocks, leading to a decrease in stock prices.<\/p>\n","post_title":"The S&P 500 And Nasdaq Indexes Closed At Record Highs This Tuesday.\u00a0 What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-sp-500-and-nasdaq-indexes-closed-at-record-highs-this-tuesday-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-06-20 22:35:56","post_modified_gmt":"2024-06-20 12:35:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17450","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

See Related: <\/em><\/strong>The S&amp;P 500 And Nasdaq Indexes Reached Record Highs This Wednesday. Could A Pullback Be Imminent?<\/a><\/p>\n\n\n\n

Earnings Growth And US Stocks <\/h2>\n\n\n\n

Robust earnings growth has fueled the US stocks and positive Q1 earnings results provide further support to the ongoing bullish view, even as we navigate the Fed and underlying economic conditions. The US economy remains resilient and regarding the latest economic news, retail sales in the US edged up 0.1% last month following April's downwardly revised 0.2% decline.<\/p>\n\n\n\n

Another positive information is that US industrial production rose more than expected in May as manufacturing output returned to growth after two months of declines. However, Boston Fed President Susan Collins said this week that even though recent inflation data has been \"encouraging,\" the process of lowering inflation may take longer than expected. Boston Fed President Susan Collins said :<\/p>\n\n\n\n

\"The data suggest an economy with demand and supply coming into better balance, as required to restore price stability. However, this process may just take more time than previously thought. It is too soon to determine whether inflation is durably on a path back to the 2% target.\"<\/em><\/p>\n\n\n\n

Joseph Kalish, chief global macro strategist at Ned Davis Research (NDR), forecasts that there will be only one Federal Reserve rate cut this year, which certainly poses a risk for the US economy. This situation could negatively affect stock prices, and it is also important to mention that high interest rates make fixed-income investments, such as bonds, more attractive compared to stocks. As a result, investors may shift their money away from stocks, leading to a decrease in stock prices.<\/p>\n","post_title":"The S&P 500 And Nasdaq Indexes Closed At Record Highs This Tuesday.\u00a0 What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-sp-500-and-nasdaq-indexes-closed-at-record-highs-this-tuesday-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-06-20 22:35:56","post_modified_gmt":"2024-06-20 12:35:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17450","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n

Financials and technology companies were the top-performing sectors, while communication services experienced the largest decline. US stock markets are closed this Wednesday for Juneteenth but according to Sam Stovall, chief investment strategist of CFRA Research in New York, even though investors are playing it safe, we will continue to see all-time highs in the upcoming days.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The S&amp;P 500 And Nasdaq Indexes Reached Record Highs This Wednesday. Could A Pullback Be Imminent?<\/a><\/p>\n\n\n\n

Earnings Growth And US Stocks <\/h2>\n\n\n\n

Robust earnings growth has fueled the US stocks and positive Q1 earnings results provide further support to the ongoing bullish view, even as we navigate the Fed and underlying economic conditions. The US economy remains resilient and regarding the latest economic news, retail sales in the US edged up 0.1% last month following April's downwardly revised 0.2% decline.<\/p>\n\n\n\n

Another positive information is that US industrial production rose more than expected in May as manufacturing output returned to growth after two months of declines. However, Boston Fed President Susan Collins said this week that even though recent inflation data has been \"encouraging,\" the process of lowering inflation may take longer than expected. Boston Fed President Susan Collins said :<\/p>\n\n\n\n

\"The data suggest an economy with demand and supply coming into better balance, as required to restore price stability. However, this process may just take more time than previously thought. It is too soon to determine whether inflation is durably on a path back to the 2% target.\"<\/em><\/p>\n\n\n\n

Joseph Kalish, chief global macro strategist at Ned Davis Research (NDR), forecasts that there will be only one Federal Reserve rate cut this year, which certainly poses a risk for the US economy. This situation could negatively affect stock prices, and it is also important to mention that high interest rates make fixed-income investments, such as bonds, more attractive compared to stocks. As a result, investors may shift their money away from stocks, leading to a decrease in stock prices.<\/p>\n","post_title":"The S&P 500 And Nasdaq Indexes Closed At Record Highs This Tuesday.\u00a0 What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-sp-500-and-nasdaq-indexes-closed-at-record-highs-this-tuesday-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-06-20 22:35:56","post_modified_gmt":"2024-06-20 12:35:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17450","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS
ADVERTISEMENT
\n
\"\"
The tech-heavy index Nasdaq closed at record highs this Tuesday<\/em><\/figcaption><\/figure>\n\n\n\n

Financials and technology companies were the top-performing sectors, while communication services experienced the largest decline. US stock markets are closed this Wednesday for Juneteenth but according to Sam Stovall, chief investment strategist of CFRA Research in New York, even though investors are playing it safe, we will continue to see all-time highs in the upcoming days.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The S&amp;P 500 And Nasdaq Indexes Reached Record Highs This Wednesday. Could A Pullback Be Imminent?<\/a><\/p>\n\n\n\n

Earnings Growth And US Stocks <\/h2>\n\n\n\n

Robust earnings growth has fueled the US stocks and positive Q1 earnings results provide further support to the ongoing bullish view, even as we navigate the Fed and underlying economic conditions. The US economy remains resilient and regarding the latest economic news, retail sales in the US edged up 0.1% last month following April's downwardly revised 0.2% decline.<\/p>\n\n\n\n

Another positive information is that US industrial production rose more than expected in May as manufacturing output returned to growth after two months of declines. However, Boston Fed President Susan Collins said this week that even though recent inflation data has been \"encouraging,\" the process of lowering inflation may take longer than expected. Boston Fed President Susan Collins said :<\/p>\n\n\n\n

\"The data suggest an economy with demand and supply coming into better balance, as required to restore price stability. However, this process may just take more time than previously thought. It is too soon to determine whether inflation is durably on a path back to the 2% target.\"<\/em><\/p>\n\n\n\n

Joseph Kalish, chief global macro strategist at Ned Davis Research (NDR), forecasts that there will be only one Federal Reserve rate cut this year, which certainly poses a risk for the US economy. This situation could negatively affect stock prices, and it is also important to mention that high interest rates make fixed-income investments, such as bonds, more attractive compared to stocks. As a result, investors may shift their money away from stocks, leading to a decrease in stock prices.<\/p>\n","post_title":"The S&P 500 And Nasdaq Indexes Closed At Record Highs This Tuesday.\u00a0 What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-sp-500-and-nasdaq-indexes-closed-at-record-highs-this-tuesday-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-06-20 22:35:56","post_modified_gmt":"2024-06-20 12:35:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17450","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n

The S&P 500 and the Nasdaq Composite closed at new record highs on Tuesday as investors digested the latest economic data and mixed comments from Federal Reserve officials. The S&P 500 index rose 0.3% to 5,487; the technology-heavy Nasdaq ticked higher to 17,862, while the Dow Jones Industrial Average advanced 0.2% and closed at 38,834 points.<\/p>\n\n\n\n

\"\"
The tech-heavy index Nasdaq closed at record highs this Tuesday<\/em><\/figcaption><\/figure>\n\n\n\n

Financials and technology companies were the top-performing sectors, while communication services experienced the largest decline. US stock markets are closed this Wednesday for Juneteenth but according to Sam Stovall, chief investment strategist of CFRA Research in New York, even though investors are playing it safe, we will continue to see all-time highs in the upcoming days.<\/p>\n\n\n\n

See Related: <\/em><\/strong>The S&amp;P 500 And Nasdaq Indexes Reached Record Highs This Wednesday. Could A Pullback Be Imminent?<\/a><\/p>\n\n\n\n

Earnings Growth And US Stocks <\/h2>\n\n\n\n

Robust earnings growth has fueled the US stocks and positive Q1 earnings results provide further support to the ongoing bullish view, even as we navigate the Fed and underlying economic conditions. The US economy remains resilient and regarding the latest economic news, retail sales in the US edged up 0.1% last month following April's downwardly revised 0.2% decline.<\/p>\n\n\n\n

Another positive information is that US industrial production rose more than expected in May as manufacturing output returned to growth after two months of declines. However, Boston Fed President Susan Collins said this week that even though recent inflation data has been \"encouraging,\" the process of lowering inflation may take longer than expected. Boston Fed President Susan Collins said :<\/p>\n\n\n\n

\"The data suggest an economy with demand and supply coming into better balance, as required to restore price stability. However, this process may just take more time than previously thought. It is too soon to determine whether inflation is durably on a path back to the 2% target.\"<\/em><\/p>\n\n\n\n

Joseph Kalish, chief global macro strategist at Ned Davis Research (NDR), forecasts that there will be only one Federal Reserve rate cut this year, which certainly poses a risk for the US economy. This situation could negatively affect stock prices, and it is also important to mention that high interest rates make fixed-income investments, such as bonds, more attractive compared to stocks. As a result, investors may shift their money away from stocks, leading to a decrease in stock prices.<\/p>\n","post_title":"The S&P 500 And Nasdaq Indexes Closed At Record Highs This Tuesday.\u00a0 What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-sp-500-and-nasdaq-indexes-closed-at-record-highs-this-tuesday-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-06-20 22:35:56","post_modified_gmt":"2024-06-20 12:35:56","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=17450","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":10904,"post_author":"14","post_date":"2023-04-13 13:40:59","post_date_gmt":"2023-04-13 03:40:59","post_content":"\n

The U.S. economy remains stable for now, and according to the official data that was released this Wednesday, the Consumer price index (CPI) increased in March at a slower-than-expected pace. The report showed the prices urban consumers pay for a basket of goods and services rose by 0.1% from February and 5.0% year-on-year, landing below consensus expectations of 0.2% and 5.2%.<\/p>\n\n\n\n

\"United<\/figure>\n\n\n\n

However, the core measure that strips out volatile food and energy prices posted a monthly gain of 0.4% and 5.6% on an annual basis. Peter Cardillo, a chief market economist at Spartan Capital Securities in New York, said<\/a>:<\/p>\n\n\n\n

\"The topline is good news, but the core is still elevated. Inflation is going in the right direction, but the fact that core remains stubbornly high suggests that the Fed is likely to raise interest rates by 25 basis points in May.\"<\/em><\/p>\n\n\n\n

Inflation remains far above the Fed's target; the path to 2% will be bumpy, and because of this, economists are worried that an aggressive Federal Reserve will push the economy into a recession that could dent corporate earnings and stock markets. It is important to mention that the U.S. Central Bank raised interest rates again in March despite the banking crisis, and the main question still remains how much time Fed will need to hold policy at a restrictive level in order to control inflation?<\/p>\n\n\n\n

The federal funds rate is now in a range of 4.75% to 5%, which is the highest level since 2006 year and a recommendation is that investors should continue to take a defensive investment approach in the second quarter of 2023. With higher interest rates, companies need to spend more money to borrow money to invest in growth, and historically, higher rates lead companies to pull back on spending (and especially on hiring).<\/p>\n\n\n\n

The U.S. economy ended 2022 year on a slightly softer footing, and analysts expect that the U.S. economy should expand by somewhere close to 1% in each of the next two years, which is roughly half the pace of growth seen in 2022. Despite this, the stock market experienced a robust rebound in the first three months of the 2023 year; still, many companies continue to see a decline in key financials, with earnings expected to slide in the upcoming quarters of 2023. There is an expectation that we could see a meaningful slowdown in economic growth and a weakening of the labor market in the United States, and if earnings growth continues to fall short of expectations, the stock market's reaction could be severe.<\/p>\n","post_title":"Macro Review Of Economic Data For The United States; CPI, Inflation, Fund Rates","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"macro-review-of-economic-data-for-the-united-states-cpi-inflation-fund-rates","to_ping":"","pinged":"","post_modified":"2023-04-13 13:41:37","post_modified_gmt":"2023-04-13 03:41:37","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=10904","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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