US equities closed higher in quiet Wednesday trading. The Dow was up by 0.8%, the S&P 500 by 1.28%, Nasdaq by 1.76% and the Russell 2000 by 1.17%. The market added to the week's gains despite a lack of significant catalysts. Meme stocks made a comeback, with companies like Carvana and Bed Bath & Beyond leading the way.

Today, all eyes are on the December Consumer Price Index (CPI) release at 8:30 am ET. The big question is whether signs of cooling inflation can drive further upside for the stock market. It's worth noting that Fed officials remain committed to their "higher-for-longer" stance and have concerns about easing financial conditions.

Earnings season kicks off tomorrow as the banks begin to release. Investors will be closely watching 2023 estimates due to the heightened macro uncertainty. By February 10th nearly 80% of the S&P 500's market cap will have reported their earnings. The Street is forecasting S&P 500 earnings will drop by 4.1% year over year in Q4. This would be the first contraction since Q3 of 2020, so it's definitely something to keep an eye on.

In the bond market, Pimco is bullish for 2023, citing a baseline outlook for a modest recession. And in the crypto market, advisers to FTX have found $5 Billion in cash or sellable Crypto which could potentially be used to repay customers and investors. Meanwhile, Binance CEO is looking to boost headcount by 15-30%.

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