Equity markets wavered on Thursday following several days of upward action. The S&P 500, however, remains below its 30-day EMA and in a downward trend driven by an increasingly cloudy near-term outlook for earnings growth. While there is increasing chatter about improvement in the economy in the back half of the year there is an equal amount cautioning the current quarter and 2nd quarter of 2022 could be disappointing. Not only are inflationary pressures cutting into earnings but supply chain headwinds persist and are impeding top-line growth as well.

Also on tap is the February Non-farm payrolls report. The report is expected to show upward of 400,000 new jobs added and could easily top that number with revisions. The biggest risk for the market, however, is in the wage data. Wage growth is expected to accelerate to 6.0% or higher and points to rising costs for businesses.