Stocks tried to stage a weak rally to close the week after the latest reading on inflation came in line with expectations. However, the longer-term direction for stocks may come down to whether investors look at the inflation glass as half-empty or half-full. On the one hand, the hope is that the rate of growth in inflation has peaked. However, at 2.6%, inflation will still take some time to reach the Federal Reserve’s 2% price target.
Investors can now say goodbye to February, which is historically a weak month for stocks. But will March come in like a lion or a lamb? Next week, investors will get two key economic reports that will set the initial direction for stocks. The week will kick off with the latest read on manufacturing and end with the Jobs report on Friday. Earnings season continues, including a report by Costco Wholesale Corp. (NASDAQ: COST) on Thursday.
Articles by Jea Yu
