July 15, 2022
Good morning,
On Wednesday morning, a stronger than expected CPI number dropped equities a few percent at the opening of their market. As the day progressed, equity prices marched back up and retraced a large portion of the initial morning sell-off. Yesterday morning before the equity market open, JP Morgan and Morgan Stanley both reported their earnings for Q2-2022. Officially it was the start of the earnings reporting season, and both companies announced much poorer numbers overall than were expected. Equities dropped a few percent again at the open and again spent the rest of the day marching back up to close with small losses.
From a short-term perspective, the equity market seems to be begging for some good economic news after absorbing what would otherwise be considered bad news for the past few days. This morning we got Retail Sales for June. It printed slightly higher than expectations and Futures are up about a percent. I don’t know if prices will hold throughout the day, but the market psyche does seem to be pointing up for the very near term. Have a good weekend.
Be well,
Mike