Marketbites: Inflation & Stocks Both Roar Higher
MARKET PERFORMANCE:
Portfolio Manager Commentary:
The stock market staged a miraculous mid-day comeback on Thursday to end the day up 2.6%. Thursday morning the market was down almost 2% after September's inflation report came in higher than expected. Year-over-year inflation rose 8.2% vs. 8.1% expected. This most likely seals the deal for at least a 0.75% rate hike by the Federal Reserve next month.
So why did the market erase losses and turn positive for the day? Some on Wall Street point to day traders and programmed buying by institutions. At one point, the S&P 500 had given back 50% of its post-pandemic rally, which likely triggered some programmed buying/rebalancing.
On the earnings front, Domino's Pizza, Delta Airlines, and Walgreens all gained on better-than-expected results.
Bank earnings kick into high gear today with JPMorgan and Citigroup reporting.
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