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July CPI, Inflation, and the Jobs Report
Barring this week's CPI results which the markets perceived as good news that led to a rally with the Nasdaq +20% from recent lows and the S&P 500 reaching the highest
Bad News Is Good, Good News Is Bad For Stocks... Except For This Week
Summary
- July CPI results are in, and the markets rallied on news that U.S. inflation is experiencing some cooling. CPI of 8.5% is good news, and the markets are responding favorably.
- Beware! Irrational exuberance may be prompting investors to invest in stocks that have fallen amid market volatility, negative investor sentiment, and earnings miss that are now rallying following CPI news.
- Weeks of the bear bounce have given way to good news that was bad for the stock market, and bad news that resulted in the markets reacting positively.
- Avoid being caught off-guard regardless of the news. Investing in stocks with volatile price swings can be a recipe for investments at risk of performing poorly.
- Seeking Alpha’s quant ratings provides you with tools for evaluating stocks to create a portfolio to identify high-risk stocks and those with Strong Buy ratings.
Steven Cress is VP of Quantitative Strategy and Market Data at Seeking Alpha. Steve is also the creator of the platform’s quantitative stock rating system and many of the analytical tools on Seeking Alpha. His contributions form the cornerstone of the Seeking Alpha Quant Rating system, designed to interpret data for investors and offer insights on investment directions, thereby saving valuable time for users. He is also the Founder and Co-Manager of Alpha Picks, a systematic stock recommendation tool designed to help long-term investors create a best-in-class portfolio.
Steve is passionate and dedicated to removing emotional biases from investment decisions. Utilizing a data-driven approach, he leverages sophisticated algorithms and technologies to simplify complex, laborious investment research, creating an easy-to-follow, daily updated grading system for stock trading recommendations.
Steve was previously the Founder and CEO of CressCap Investment Research until its acquisition by Seeking Alpha in 2018 for its unparalleled quant analysis and market data capabilities. Prior to that, he had also founded the quant hedge fund Cress Capital Management, after spending most of his career running a proprietary trading desk at Morgan Stanley and leading international business development at Northern Trust.
With over 30 years of experience in equity research, quantitative strategies, and portfolio management, Steve is well-positioned to speak on a wide range of investment topics.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given that any particular security, portfolio, transaction or investment strategy is suitable for any specific person. The author is not advising you personally concerning the nature, potential, value or suitability of any particular security or other matter. You alone are solely responsible for determining whether any investment, security or strategy, or any product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. Steven Cress is the Head of Quantitative Strategy at Seeking Alpha. Any views or opinions expressed herein may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.