Stocks are climbing this morning following a tamer than expected inflation report with blue chips and small caps both outperforming on the day. Groups like energy, financials, communication services all doing well. Joining us here at Post9, JP Morgan Asset Management's chief market strategist for the Americas, Gabriella Santos.So we are seeing this that it's it's less about big tech for a change and more about everybody else. What do you think is driving that. So I think in terms of the inflation report thi ...

Market Trends & Economic Outlook - The Fed's thinking on rate cuts, the labor market, and inflation is discussed [1] Investment Performance & Risk Appetite - Retail investors have seen better returns than industrial investors [1] - Retail investors show a big appetite for risk [1]

Basically, we are still experiencing high levels of inflation, but they are lower than expected.This is not good but it's public servant math.Bitcoin Archive (@BTC_Archive):JUST IN: 🇺🇸 July U.S. CPI inflation rises 2.7%, below 2.8% expectations.September rate cuts incoming 🚀 ...

JUST IN: 🇺🇸 July U.S. CPI inflation rises 2.7%, below 2.8% expectations.September rate cuts incoming 🚀 ...

💥BREAKING:🇺🇸 CPI DATA CAME IN AT 2.7%EXPECTATIONS: 2.8%RATE CUTS ARE COMING! 🚀 https://t.co/mTiKrbMRj4 ...

🚨 BREAKING 🚨🇺🇸 CPI DATA CAME IN AT 2.7%EXPECTATIONS: 2.8%RATE CUTS ARE CONFIRMED ...

The latest UK labour market data won't do anything to bring consensus to a divided Bank of England. The jobs market is cooling, but the pace is unclear, and sticky price inflation makes further rate cuts in 2025 politically very tricky. https://t.co/IEBHUOezIh ...

Rate cuts will come.Trillions to enter crypto soon.We will get filthy rich! https://t.co/CiQsm2xeEd ...

Market Trends & Investor Sentiment - Convera Singapore suggests foreign outflows from Malaysia's domestic bond market may ease [1] - Growing expectations of Fed rate cuts are shifting investor sentiment [1]

Summary of Key Points from the Conference Call Industry Overview - The focus is on the US equity market, particularly the transition from a late cycle to an early cycle backdrop, indicating a rolling recovery is beginning [4][15]. Core Insights - **Economic Transition**: The July jobs report supports the bullish case for stocks, confirming a shift to an early cycle environment with rebounding earnings and cash flow expected over the next 6-12 months [4][15]. - **Rate Cuts Anticipation**: The expectation of significant rate cuts is based on the belief that tariff-induced inflation will subside later in the year, with core CPI expected to peak in August [4][12][15]. - **Inflation Data Impact**: A hot CPI print could lead to quality leadership in stocks, while a lighter print may favor small caps and lower quality stocks, suggesting investors should remain nimble around CPI reports [4][12][15]. - **Labor Market Dynamics**: A measured rise in the unemployment rate and weak payroll prints could pull forward market expectations for rate cuts, which would be constructive for equities [9][12]. Sector Analysis - **Preferred Sectors**: The company remains bullish on Industrials and Financials while underweighting Consumer Discretionary Goods due to tariff pressures and weaker pricing power [4][15][13]. - **Earnings Revisions**: There is a notable improvement in earnings revisions breadth, which has moved from -25% in April to +16%, indicating a positive shift in corporate confidence [27][15]. Earnings Season Insights - **Earnings Performance**: The 2Q earnings season has shown a surprise ratio of +8% for EPS and +3% for sales, with expectations of 10% y/y EPS growth for 2025 and 13% for 2026 [27][28]. - **Market Reactions**: Price reactions to earnings have been muted, with an absolute change of -0.1% and relative to the S&P 500 flat at 0.0% [57]. Additional Considerations - **Tariff Pressures**: The sectors most exposed to tariff costs, particularly consumer goods, are expected to face margin compression due to a lack of pricing power, which is a key reason for the underweight stance on Consumer Goods [13][15]. - **Future Outlook**: The overall outlook remains positive for the next 6-12 months, driven by factors such as positive operating leverage, AI adoption, and a weaker dollar, despite near-term inflation risks [15][4]. Conclusion - The company maintains a bullish outlook on US equities, emphasizing the importance of upcoming economic data, particularly CPI, in shaping market dynamics and sector performance [4][15].