S&P 500 is trending up this morning after the U.S. Bureau of Labour Statistics said inflation remained within expectations in July.

Emily Roland shares her view on U.S. stocks

Versus a year ago, consumer prices were up 3.2% last month versus 3.3% expected. Still, Emily Roland of John Hancock Investment Management said today on CNBC’s “Squawk Box”:

 

We’ve had an incredible run in terms of risk taking coming into the quarter. So, some cooling is warranted in this environment. We still think this a challenging backdrop [with] mixed macro messages.

She does not find now as a suitable time to make riskier bets and recommends that investors stick to high quality names with solid balance sheets. Once sector that she likes in particular at present is healthcare.

The benchmark index is up nearly 20% for the year at writing.

Where did core inflation stand last month?

For the month, consumer prices came in up 0.2% in July – in line with the Dow Jones estimates.

Core CPI (excluding food and energy) also remained within expectations last month. It was up 4.7% for the year and 0.2% for the month versus 4.8% and 0.2% expected. Still, Roland told CNBC this morning:

 

There are factors we need to contend with. We still have the lagged impact of higher rates likely to hit the economy. We’re seeing earnings growth negative on a year-over-year basis, liquidity challenges.

In contrast, Hightower’s Stephanie Link last week reiterated her bullish view on U.S. equities market. The Federal Open Market Committee (FOMC) is scheduled for its next policy meeting on September 19^th-20^th.

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