Stocks End Higher, All Eyes On This Morning's CPI Inflation Report

Market Moves You Need to See Stocks End Higher, All Eyes On This Morning's CPI Inflation Report [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Higher, All Eyes On This Morning's CPI Inflation Report [Stocks End Higher, All Eyes On This Morning's CPI Inflation Report]Image: Bigstock Stocks closed higher yesterday with all of the indexes in the green. And they are all positive for the week with 2 more days to go. Yesterday's MBA Mortgage Applications rose by 9.9% w/w with purchases up 5.6%, and refi's up 18.8%. Wholesale Inventories slipped -0.2% m/m vs. last month's -0.4% pace, and views for -0.1%. Today we'll get Weekly Jobless Claims, and the Consumer Price Index (CPI) retail inflation report. The CPI is expected to show headline inflation rose 0.2% m/m vs. last month's 0.1%, while the y/y rate is expected to inch up to 3.2% vs. last month's 3.1%. The core rate (ex-food & energy) is expected to be up 0.2% m/m vs. last month's 0.3% pace. And the y/y rate is expected to decline 3.8% vs. last month's 4.0%. Aside from the slight expected increase to the headline number, if the core rate declines, it will continue the trend of easing inflation. And will be looked at as further evidence that rates could come down this year, and maybe sooner rather than later. Although, after today's CPI report, we'll then get tomorrow's Producer Price Index (PPI) wholesale inflation report. If both show inflation on the decline, that will be bullish for stocks. Of course, there's still one more inflation report after that on January 26. That's the Personal Consumption Expenditures (PCE) report (which is the Fed's preferred inflation gauge). That's more than 2 weeks away. But if the CPI and PPI reports look good, there's a high probability that the PCE will look good as well. The next FOMC announcement on rates is on January 31. After a shaky start to the new year, stocks appear to have regained their footing and could be ready to begin their next leg up. A few good inflation and economic reports could help get that going. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Advance Notice to Zacks Members]( [Earnings Surprises] Imagine being able to KNOW which stocks will beat expectations this earnings season. You'd be able to buy early and take profits on the climbing prices. Zacks proprietary "ESP" formula has given members exactly that chance. Since 2014, it has predicted positive earnings surprises with incredible 80% accuracy! Now, it's locked onto an elite handful of stocks set to stun Wall Street when their earnings reports are released. You can be among the first to get in on these picks BEFORE other investors rush in and drive up the prices. Don't delay: Access is closing to new investors. 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