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Stronger than expected economy portends fewer rate cuts this year and improving earnings. Companies are starting to report their first set of earnings for 2

Stronger than expected economy portends fewer rate cuts this year and improving earnings. Companies are starting to report their first set of earnings for 2024, and they matter more than usual for stocks because the other main support for elevated markets-hope for rate cuts-is being chopped away. Part A) Complete Each Question(Separate your response by question number)1. What are companies starting to report In the second quarter? According to the article, what is the market expecting from earnings going forward? 2. What good news supports the earnings growth expectations? What does that mean for rate cut expectations? 3. When inflation data was released on Wednesday, how did various assets (stocks, bonds, etc.) respond? What are futures signaling for a chance of rate cuts this year? 4. Aside for the inflation data last week, what are investors overall still betting on that will offset the pullback from rate expectations? Do you agree or disagree? Why? 5. According to the article, in this environment, stocks can do fine unless and until the economy gets so hot that its obvious the Fed will have to raise rates again to cool things down. With Inflation at 3.5%, and the fed having a target of 2%, do you think the Fed should hold interest rates at this level, increase interest rates, or start the lowering cycle on interest rates? Why? Part B) Post a link of One article that supports One of your responses to the questions above and/or provides more insight on the subject discussed in the article.

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