Last week, investors’ hopes for signs of cooling U.S. inflation were dashed as the April CPI report showed inflation still running hot.

The U.S. economy contracted by an annualized 1.4% in 1Q, well short of consensus expectations for a 1.0% expansion.

With 22.0% of market cap reporting, 1Q22 S&P 500 operating earnings per share (EPS) are currently tracking $51.30.

While consumer prices were certainly very hot in March (Headline CPI +1.2% m/m, +8.5% y/y), they were no worse than feared.

Food inflation is regressive since lower-income households spend more on food as a share of total spending than higher-income households…

The week in review Unemployment rate fell to 3.6% Hourly earnings: +5.6% y/y; +0.4% m/m The week ahead Durable orders Light vehicle sales Services PMI Thought of the week Asset class returns in 1Q22 were impacted by heightened geopolitical tensions, tighter monetary...