CPI, Earnings & Taiwan

Inflation is well under control, in our opinion, as February’s CPI—excluding the anomalous shelter component—is right around the Fed’s 2% y/y target. But with retail sales suggesting strong consumer spending, the Fed needn’t rush to ease. … Also: With nearly all of the S&P 500 companies’ Q4 earnings reports now in hand, Joe observes that their collective revenues per share rose to a record high—impressive considering inflation’s decline. But the collective profit margin fell from its Q3 level, causing a q/q earnings-per-share shortfall. Four sectors contributed to the margin weakness. … And: Melissa reviews Taiwan’s economy and stock market, which have been strong notwithstanding China’s saber rattling.