The market is experiencing a slight lack of activity today as it prepares for the release of the Consumer Price Index (CPI) and the Producer Price Index (PPI) later this week. The CPI is scheduled for Wednesday, while the PPI is expected on Thursday. Additionally, this week will see the release of financial earnings from notable companies such as JP Morgan Chase, Citibank, Wells Fargo, and Blackrock.
Investors are cautious as they anticipate the CPI and PPI reports, as these indicators could potentially lead to a more aggressive stance by policymakers (a “hawkish tone”). On the other hand, corporate earnings might reveal that the costs associated with growth are surpassing sales growth. Given the ten rate hikes we have experienced, it is likely that earnings will be affected over time.
Last week, we mentioned the market’s high volatility and its inclination to sell off at the slightest provocation. Therefore, it is crucial to focus on companies with strong fundamentals and long-term potential, as there are numerous valuable opportunities available.