Busy week of economic news with inflation prints for both CPI and PPI as well as retail sales and industrial production. CPI inflation prints are expected to remain in the mid 2% level for both headline and core with Fed Chair Powell last week suggesting that tariffs should raise inflation but that it may be too early to see it in this months data.
Major equity indices will attempt to move higher for a 3rd straight week as encouraging trade/tariff talks continue with China potentially now coming to the negotiating table. ISM Services PMI is out today at 10am, with expectations for a slight decline to 50.3 from March's 50.8 reading, still in expansionary territory.
The potential for tariff agreements and Trump backing off his statement to fire Fed Chair Powell helped US equity markets to advance. The technology sector led all gainers, up 8%, while Consumer Cyclicals were a close second with a 6.6% gain.
Almost 25% of SPX companies report this week with most eyes on TSLA and GOOGL, although a broad swath of industry reports will provide greater detail on how tariffs are impacting the consumer and the economy as investors anxiously await announced frameworks for initial trade deals.
A big week of earnings ahead with investors focused on forward looking commentary which was less than enthusiastic last week from JPM/BLK/WFC. Financial companies GS/BAC/C/SCHW all reporting as are hcare juggernauts UNH/JNJ/ABT with NFLX hoping to strike a strong consumer chord Thurs after the close.
