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Will Wednesday's CPI Read Define the Fed's Next Move?

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As markets seek direction into intraday trading Tuesday, what's top of mind on Wall Street? 

Chris Versace, co-portfolio manager of the Action Alerts PLUS investing club, broke down what to watch for the rest of the week. 

Full Video Transcript Below: 

CHRIS VERSACE: The data is really going to depend on what we have. And the data I'm referring is going to be the slew of inflation data we get over the next couple of days, as well as the June retail sales report. The concern we have in a market like today where stocks are moving higher and really no news. There's no economic data to be had. There is very few companies that are reporting, granted portfolio holding PepsiCo delivered a stellar June quarter and upped its outlook for the year.

But that's really the lone report that we have. So we're kind of in this no man's land until we start to get this data. Would we like to see a more constructive market environment going forward? Of course, we would. The concern that we have is we shared however in our morning notes to members is that the CME Fed watch tool is something we're going to have to watch closely based on the inflation data. We're starting to see expectations really start to inch higher for something more than a 75 basis point rate hike later this month at the fed's meeting. So the next two days of CPI, PPI data for June is really to be critical. I think as we digest that, we'll have a much better sense as to what the fFed's going to do and a much better sense as to whether or not they can really, really stick the soft landing

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