Investors have been waiting for crucial inflation data that will come out this week. The stock market is not doing well either, with Monday evening showing no improvements after a quiet day of trading in which investors mostly awaited the latest developments on economic growth around the world before making any decisions about investing their money or not.
Future prices for stocks tied to the Dow Jones Industrial Average fell by 0.1% along with S&P 500 futures and Nasdaq 100 futures, each taking a small dip in value during yesterday’s trading session.
The three stock market indexes managed to finish a little higher yesterday. Dow Jones Industrial Average ended the day with 16 points, which equaled less than 0.1% and jumped 300+ points earlier that morning. The tech-heavy Nasdaq Composite advanced too but at just under 1%. Meanwhile S&P 500 added another low of 0.3%.
The 10-year Treasury yield hit an all time high that morning, climbing to 3%.
investors are still contemplating the recent bounce in stocks, wondering if it is a bear market rally or if they have finally hit rock bottom from this year’s sell-off. There were no U.S economic data releases on Monday while the Federal Reserve had no earnings reports for major companies during the blackout period so investors will continue to assess how things go with financial markets over the coming days before making any decisions about their investments.
The President of Yardeni Research, a sell-side consultancy that provides global investment and business strategy services spoke on CNBC’s Closing Bell: Overtime and said:
“Since the beginning of the year, we’re seeing an altitude sickness when you look at the valuation multiple,” he shared. “To a large extent, clearly, with the benefit of hindsight, the market was overvalued. A lot of that was in the negative cap seat, big-cap names, related companies. I think we’ve seen a tremendous correction in that area. And now the question is whether the market can accept the kind of earnings expectations that analysts are delivering and whether those expectations will be correct.”
Investors will be paying close attention to company earnings this week. For example, Cracker Barrel is scheduled release data on Tuesday and J.M Smucker Companyas well as United Natural Foods are also due reports later in the day.
Investors will be closely monitoring last month’s consumer price index reading for any signs that inflation may have peaked. The data is due out on Friday and comparing it to April numbers could give some insight as to how high prices go in the future might look like now before they start climbing again.
References:
Monday Showed No Improves as Stock Futures Dipped
