Equity markets seesawed on Thursday following an as-expected CPI report. The report was as expected and shows inflation declined by 0.1% from the previous month, but the YOY comparisons remain hot. In this scenario, the FOMC can be counted on to hike interest rates by at least 75 basis points before stopping, if not more. The real takeaway is that pressure on the economy will not let up any time soon.

Today's news will be centered around the Big Banks. The US largest banks are reporting earnings today, and the results and outlook will have a bearing on the direction of the S&P 500 this year. As it is, the outlook for earnings continues to sour; if the banks add to this trend, the S&P 500 will likely move lower by the end of the reporting season.