Today's Scoop:

Hey friends, it's hump day. Here's what you need to know today...

1. Earnings season starts on Friday.

2. Tomorrow's inflation report will be very important.

3. Mortgage rates have come down from their recent peak.

S&P 500: 3,969.611Mo: -1% | 1Yr: -16% | 5Yr: +42%

The market drifted higher today without much major news.

Earnings season starts on Friday, [🤓] and tomorrow's inflation report will be critical. Ideally, we hear inflation keeps cooling, some costs come down, and businesses had a better fourth quarter than we expected. Investors will expect harsh conditions ahead if there's a surprise jump in inflation. More on that tomorrow.

Mortgage rates have come down from their recent highs. The Mortgage Bankers Association said the average 30-year mortgage rate dropped to 6.4% last week from over 7% in the fall. It's still much higher than the 3.5% of a year ago.

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Earnings Season

Public companies are required to report on their financial health every quarter. We get to take a look at their sales, expenses, and profits (aka earnings). The few weeks after the end of the quarter, when most companies give their reports, is called earnings season. It's an absolute rush!