Markets brace for inflation report | Cramer: Expect some brutal days | Buffett's stock-picking lieutenant
Investors are paying close attention to any reading on inflation these days, and the consumer price index will be the big one to watch in the coming week.
Investors are fixated on anything to do with inflation, so the consumer price index Tuesday will be a key report for markets in the week ahead. Some market pros say if the number is much hotter than the 0.4% monthly gain expected it could get Federal Reserve officials thinking about winding down their bond buying program sooner rather than later. The Fed's important September meeting is in the following week.
There is also a key retail sales report Thursday, expected to be soft again after last month's decline. The trend of hotter inflation and slower economic activity has stirred up talk in the markets about stagflation. Some economists say the current conditions are nowhere near stagflation, a condition where employment falls off in an inflationary period. Instead, it is the result of the pandemic's shocks on the market – first the dramatic shutdown, then the turnaround spike in demand.
Analysts are also watching to see if companies continue to discuss the negative impact of supply chain disruptions ahead of third quarter earnings, as several did in the past week.
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