Earnings reports show Fed making progress on inflation

CNBC’s Jim Cramer told investors Thursday that the market is finally seeing signs that the Federal Reserve is succeeding in its fight against inflation.

“Now we are finally making headway in the war on inflation, and progress is the most important product in this market.” He said.

Stocks fell for the second day in a row on the back of mixed earnings reports that prevented the market from reviving its gains earlier in the week.

Among the companies reported this week are carriers and freight forwarders, whose bleak outlook and outlook suggest the Fed’s fight against inflation is starting to weigh on them, according to Kramer.

Here are some examples:

  • JB Hunt It posted better-than-expected earnings and revenue for the fourth quarter but said it was struggling to secure equipment. The company also warned of the uncertainty surrounding macroeconomic headwinds.
  • Knight-Swift Transport It reported a profit loss and lowered full-year earnings guidance, and forecast a tepid shipping season in the fourth quarter.
  • Union Pacific It lagged behind third-quarter freight revenue and vehicle tonnage estimates and lowered its full-year forecast, warning of rising costs.

“The important thing is that freight rates continue to fall, which means the Fed is making progress in its war on inflation,” Kramer said.

And it’s only a matter of time before wages are inflated, he added Huge headwinds for the Federal Reservegoes down.

“With business slowing down, no one will talk about a shortage of truck drivers. Another victory for the Federal Reserve,” he said.

Jim Kramer gives his opinion on Thursday's market action

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