Jim Cramer says the market needs a solid earnings season after Thursday's hotter-than-expected inflation numbers
Jim Cramer says the market needs a solid earnings season after Thursday's hotter-than-expected inflation numbers


CNBC’s Jim Cramer bemoaned Thursday’s hotter-than-expected inflation figures for December, saying the information was a blow to bulls hoping for rate of interest cuts from the Federal Reserve. He mentioned the market needs a solid begin to earnings season on Friday to enhance the averages.

“The bulls did not get the cool inflation quantity they needed. Consider that strike considered one of a two-strike sport,” he mentioned. “Tomorrow’s earnings carry one other pitch. If we get one other swing and a miss, I do not assume the averages will be capable of rebound like they did this afternoon.”

The consumer price index elevated 0.3% in December from the month earlier than, greater than most economists estimated, which suggests the U.S. does not but have a deal with on inflation. Following the information, the Nasdaq Composite closed flat, the Dow Jones Industrial Average gained 0.04% and the S&P 500 edged down 0.07%.

On Friday, earnings season kicks off with studies from massive banks JPMorgan, Citigroup, Bank of America and Wells Fargo. These outcomes may set the tone for earnings season, Cramer mentioned.

Although Thursday introduced some optimistic commentary on beneficial properties for the “Magnificent Seven” and their Big Tech friends, Cramer had hoped for broader market success. He mentioned the session noticed “extra shares decline than enhance” which is “much less wholesome” than typical motion the market’s seen since October.

“Tomorrow we’re getting report playing cards from the main banks, and if they are not particular, if they do not wow us, I believe we’ll be 0-for-2,” Cramer mentioned. “And that would crack the exterior of what is been a fairly darned good yr to this point.” 

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