Stocks End Lower After Hotter Than Expected Inflation Report

Plus 5 New Strong Buys for Today Stocks End Lower After Hotter Than Expected Inflation Report [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Lower After Hotter Than Expected Inflation Report [Stocks End Lower After Hotter Than Expected Inflation Report]Image: Bigstock Stocks closed lower yesterday after a higher than expected CPI report showed inflation at fresh 40-year highs. Headline inflation for June was up 1.3% vs. the consensus for 1.1%. That was also higher than May's increase of 1.0%. On a year over year basis, it was up 9.1% vs. estimates for 8.8% and May's 8.6%. Core inflation, which excludes Food & Energy, was up 0.7% m/m (vs. the consensus for 0.5% and May's 0.6%), and 5.9% y/y (vs. the consensus for 5.8% and May's 6.0%). The hoped for drop in the headline number, based on recently falling oil and gas prices, didn't materialize in June's reading, as it was even hotter than before. That could show up in July's reading. But for now, unfortunately, with the core number remaining elevated, and coming in higher than excepted, concerns that inflation is becoming entrenched are growing. Stocks managed to bounce well off their intraday lows, even turning positive a few times during the day, before slipping modestly back into the red. Last month's sell-off lows continue to hold. That's a positive sign. But the market will need more to build on that. With earnings season beginning, that could very well be the catalyst the market needs. With financial stocks on deck, that could give us further insight into the strength of the economy. But this earnings season, traders will be looking at not just Q2's results, but what forward guidance will look like for Q3 and the full-year. There's lots of optimism that the second half could see a strong rebound in GDP. If so, that should be reflected in the company's guidance. In spite of a tough first half, there are plenty of positives in the market that have been virtually ignored. And eventually, the market will have to take notice. Especially with valuations having fallen to more than 2-year lows. And many are racing in to grab those bargains while they can. But you need to know what to look for. If you're searching for new stocks to get into at these low prices, then be sure to read our latest commentary... [How To Trade The Current Bear, And Plan For The Coming Bull]( Best, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Get Your Free Copy of Finding #1 Stocks - A $49.95 Value]( Starting today, you can claim a free copy of Finding #1 Stocks by Zacks’ EVP Kevin Matras. You don’t even have to pay for shipping! Its 300 pages unfold virtually every trading secret he has learned over the last 25 years to beat the market. Here’s what’s inside: - Exact formulas of strategies that produced gains up to +48.2%, +67.6%, and even +95.3% in 2021… - How to spot bullish set-ups and bearish break-downs to stay ahead of the market… - Traits to determine the type of trader you are and finding stocks with highest probability of success… - Kevin's personal all-time favorite screening strategy… - And much more! This limited-time offer will end Saturday, July16 or when our inventory is depleted. Don’t miss this unique opportunity. [Get your FREE book now »]( Most Popular Articles from Zacks.com [The Overlooked Difference in June's Inflation Report]( Today's reaction to a high CPI print is the opposite of what we saw last month. [Read More »]( [Bet on 3 Energy Stocks Poised to Beat Q2 Earnings Estimates]( Crude price has aided upstream operations in the June quarter and is likely to have boosted the bottom line of these companies. [Read More »]( [Q2 Earnings Season Gets Underway]( Excluding the hefty contribution from the Energy sector, total Q2 earnings for the rest of the S&P 500 index are expected to be down -6.1% on +7.4% higher revenues. [Read More »]( [4 Charging Stocks Worth a Closer Look Amid EV Revolution]( There are opportunities in the EV charging domain and getting in early on these stocks can fetch handsome long-term rewards. [Read More »]( [3 Gene Sequencing Stocks With Potential to Gain in 2H22]( With multiple subvariants of Omicron doing the rounds, the need for genome sequencing is likely to rise creating investment prospects. [Read More »]( [What's Today's Top Rated Mutual Fund?]( Use the Zacks Mutual Fund Rank, a quantitative ratings system designed to help you find the best funds to beat the market. See which ones to buy, which to sell and track your favorite mutual fund family. [Get started now »]( [Bull of the Day: Cybin (CYBN)]( Instead of a hangover, the side effect from this treatment has been described as an "after glow." [Read More »]( [New Zacks Strong Buys for July 14th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( More Zacks Resources Mobile App Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com. [Download our Zacks App for Apple iOS]( [Download our Zacks App for Android]( Zacks Members' Success Stories Visit [Success Stories]( to hear how Zacks research, tools and portfolios help our members outperform the market. Get all of our market insights and much more when you connect with us. [Visit Zacks on Facebook]( [Follow Zacks on Twitter]( [See Zacks videos on YouTube]( [Join Zacks on LinkedIn]( [Read Zacks Commentary on StockTwits]( This free resource is being sent by [Zacks.com](. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". [www.zacks.com/terms_of_service]( Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through May 2, 2022. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit [( for information about the performance numbers displayed above. Zacks Emails If you would prefer to not receive future profit-producing emails from [Zacks.com]( the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please [click here]( and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606