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Skip to main contentMarket Extra Published: July 11, 2023 at 3:59 p.m. ET
Tomorrowโs inflation report could send U.S. stocks higher, or help to provoke a retracement.
Getty Imagesrange on average in the next few months, reflecting continued moderation in
shelter inflation, lower used car prices, and slower non-housing services inflation
as labor demand continues to moderate,โ he said in the note. []To be sure, some believe the Manheim indexโs utility has already waned. Brent Donnelly of Spectra Markets showed that Manheim was a reliable prognosticator of core inflation between 2020 and 2022 as price pressures started to pick up after a decade of almost no inflation in the U.S. However, its reliability started to weaken as inflation has cooled from its highest level in more than four decades from last summer. []Economistsโ median estimates have been fairly accurate since the start of the year in predicting inflation, Donnelly said, which diminishes the odds of a substantial downside surprise. []Investors will learn at 8:30 a.m. Eastern on Wednesday what the exact inflation numbers for June were according to CPI. Meanwhile, the Fedโs preferred PCE Price Index will be released later this month. []So far, U.S. stocks appear to be doing better this week, as the S&P 500 SPX, +0.67%, Nasdaq Composite COMP, +0.55% and Dow Jones Industrial Average DJIA, +0.93% all finished higher on Tuesday thanks in part to optimism surrounding the inflation report. The S&P 500 gained 0.4% to 4,428 just before the close, according to FactSet data []Markets have experienced some turbulence as of late. The S&P 500 has fallen during two of the past three weeks, following a streak of five straight weekly gains that marked the longest such winning streak since late 2021, according to FactSet data. Howard Marks says heโs made five great market calls in his career. Hereโs how he did it. []Billionaire investor Howard Marks shared some investment wisdom with clients, including what he calls the “cardinal sin” of investing and how to avoid it. []Joseph Adinolfi is a markets reporter at MarketWatch. –> More stuff could go in this aside column



