I don't think it's any real surprise that the Fed is going to keep raising rates. I think the weakness is more about broader inflation expectations creeping into the market.
More Quotes from John Forelli:
Greenspan's swan song will be probably the biggest focus of the market and whether there's any change in the Fed's language. In the energy area, people expect earnings to be good and Exxon didn't disappoint.John Forelli
The market is balancing whether to put more weight on corporate profits, which are looking dismal, or on an economic rebound, which is more hoped for than evident. Right now, even with a lack of any clear and compelling evidence of economic recovery, the market is laying its bets on the rebound.
John Forelli
We're going to have awful earnings reports for the second and third-quarter so we have to brace ourselves for that. To make a sustained rally, we need to see economic news and earnings news start to turn positive and we don't see that happening until the fourth quarter.
John Forelli
Oil and inflation are always a concern. It's the main driver for why we've seen this defensive market this past week.
John Forelli
We need some sort of clear indication from the Fed that the economy is not slowing down and that inflation is not out of control. But it's not likely we are going to get that clarity in the next few months.
John Forelli
If unit labor costs are tame and unemployment comes in 'in line,' then 'the-Fed-is-pausing' camp gets a lot of credence.
John Forelli
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