Issue 6 – Pondering the Fed’s Rate Path: Winning the Inflation War

Traders should have been happy with this week’s reprieve of top-tier economic data. Unfortunately, they were busy interpreting a cacophony of Fedspeaks, which led to a sharp increase in bond yields pushing the S&P 500 down 46 points or 1.1% to 4090. Fourth Quarter S&P 500 earnings per share are uneven but decreased only 2.9% from the same period a year earlier compared to a year-over-year 12% decline for the broad benchmark. It may account for the reason why 4Q22 EPS misses are not heavily punished. “Of the 345 companies that have reported so far, overall earnings results are beating estimates by a median of 6%, and 69% of those reporting are beating estimates” says Tom Lee.


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By Hubert Marleau

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By Hubert Marleau

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