Stocks to spin the narrative no matter what


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In
my
view,
it
is
going
to
be
a
quite
a
task
for
investors
to
pick
up
on
any
fear
from
the
US
CPI
report
later.
The
estimate
shows
that
we
should
get
a
softer
headline
reading,
although
core
annual
inflation
is
estimated
to
remain
steady
as
in
May.

If
it
plays
out
that
way
and

the
details

are
somewhat
similar
to
last
month,
it
will
be
easy
for
investors
to
keep
arguing
that
the
disinflation
process
is
still
playing
out;
albeit
very
gradually.

If
it
doesn’t,
I
reckon
investors
might
react
negatively
at
first
but
will
then
brush
this
aside
as
just
being
a
bump
in
the
road.
That
seems
to
be
the
go
to
story
that
central
banks
are
trying
to
sell
these
days.
And
as
long
as
it
fits
with
the
more
bullish
narrative,
I
foresee
stocks
will
have
no
qualms
with
that.

The
only
way
I
can
imagine
equities
facing
a
significant
dent
is
if
the
main
numbers
are
much
higher
than
anticipated
and
the
details
also
reveal
a
setback
to
last
month’s
report.
In
that
sense,
it’s
a
tall
order
to
really
get
all
of
that
in
line.

Otherwise,
no
matter
what
the
outcome
is,
I
can
imagine
stocks
spinning
the
narrative
to
however
it
pleases.

The
S&P
500
is
already
up
a
little
over
3%
in
July
trading
thus
far.
The
move
higher
also
has

a
strong
seasonal
backing

to
it,
so
that
could
yet
exacerbate
any
continued
bullish
sentiment
in
the
week(s)
ahead.

There
will
definitely
be
some
pushing
and
pulling
before
the
month
is
over.
However,
stocks
certainly
do
look
poised
to
challenge
the
gains
in
February
and
May
at
this
stage.
It’s
all
on
the
shoulders
of
tech
shares
now,
again
and
again.