Michael Sheldon Higher Quotations

So far, we haven't seen a major increase in core inflation, all we've seen is a sharp rise in energy prices. It seems logical that higher energy prices should start to feed through to higher inflation.

I think the last few weeks have probably been frustrating for investors. Earnings have been very positive, but the focus has been on interest rates. Over the next few sessions, it looks like the fear of higher interest rates will probably outweigh the earnings.

Looking into the second quarter, what could move us higher is a decline in oil prices, lower bond yields, solid economic data that is non inflationary and stronger growth on the earnings front.

Today, the markets once again pushed to new highs for the indices but the rally appears to have stalled. The likely culprit is that higher bond yields may finally be weighing on the minds of investors.

Oil prices in the morning would've been the biggest story, but by the close the market's incredible resilience is what investors are left with, ... It's a contrast to how the markets ended yesterday. I think so far higher oil prices have not had a major impact. There are a lot of positives driving the consumer and the stock market.

This market is just extremely resilient, and if we don't get a major spike up in energy prices or interest rates from current levels, the strong earnings environment we find ourselves in could help carry the markets higher for several more weeks.

Once bond yields started moving higher again, investors reflected on the interest rate environment and decided to take profits off the recent highs.

If we can build on Tuesday's significant . . . turnaround, you could see buyers start coming back into the market and you could see a further push higher over the next several days.

If we can build on Tuesday's significant intraday turnaround, you could see buyers start coming back into the market and you could see a further push higher over the next several days.

If you take all those comments together, it implies the Fed is less worried about deflation and more about inflation, all of which sets the stage for higher rates.

Buying enthusiasm dried up as the day progressed. Lingering worries over rising energy prices and higher bond yields may have finally caught up with the market.

All in all, I think investors are trying to put on a positive face and push stocks higher into the year-end. I think the market is going to try to build on yesterday's modest gains.

The market is very oversold right now and I expect it to move higher over the next week or two. But beyond that, it's going to be very difficult for it to make much headway until we get a clearer sense of how much the Fed is going to move.