U. S. shares struggle ahead earnings season

U. S. shares opened higher, Wednesday, but turned negative. As third-quarter earnings reports start flowing in today, investors will be keeping a sharp eye on growth.

Returns will slow because of elevated inflation and supply chain disruptions in addition to rising costs.

Despite the current bottlenecks and inflation pressures, Fed is unlikely to change the timeline for tapering its asset purchases and raising interest rates, which is projected to happen near year end 2022.

Economists do not see a protracted hit to growth in the longer term, but the pace of inflation and jobs growth over the next 12 months will be key factors in determining how much those rates increase.