JPMorgan's Market Intel Desk Remains "Tactically Bullish": Here's Why

While the market was hyper-focused on last week's inflation data, Goldman's Market Intel team writes that traders may have missed that some growth metrics are improving. Referencing the last notes from JPM's chief economist Mike Feroli, Market Intel head Andrew Tyler notes that consumer spending for Q3 is tracking at 1.5%, up from 0.5%, leading Feroli to increasing his GDP forecast from 1.0% to 1.5%. Further, Feroli points to the Small Business Survey, NY Fed’s Mfg Survey, and Jobless data are all incremental positives. Lastly, he does not foresee Powell tipping his hand for what the Fed should do at the September meeting.

Against this macro backdrop, the JPM Market Intel desk remains Tactically Bullish, and this week, the traders look for a continuation of positive earnings to help maintain the bull rally.