Inflation and Earnings Reports Put Recent Stock Rally to the Test
-
Inflation data on Thursday will test the recent stock market rally as the Fed's preferred inflation gauge is expected to show prices are still too high.
-
Corporate earnings reports this week from Salesforce, Dollar Tree, Ulta Beauty, and others may provide insight into consumer health and software demand.
-
Economists expect monthly core inflation rose 0.2% in October, suggesting an annual rate much closer to the Fed's 2% target.
-
Stocks rallied last week on data showing inflation slowing, raising hopes of a "soft landing" for the economy.
-
Major indexes closed last week up around 1% as markets priced in just a 12% chance of another Fed rate hike.