A mixed close in the markets today — albeit most major indexes hovering right around break-even — reflects the deliberations of Fed Chair Jay Powell’s comments on Capitol Hill. Earnings results for Q2 thus far have been predictably positive, especially considering historically low base effects from last year’s pandemic conditions. The Dow and S&P 500 were up 0.13% and 0.12%, respectively, while the Nasdaq fell -0.22%. The Russell 2000 dropped -1.63%.Chairman Powell fielded questions from House representatives today, in which he insisted that it is only a small group of goods and services demonstrating much higher inflation, and that the labor market still has “a long way to go.” Powell and the Fed have proven fairly prescient to this point, holding back from making monetary policy shifts as new data brings evidence of inflation which have shown some wavering aspects over the past couple weeks.Still, many investors are growing a little nervous that continued inaction to combat inflation — by tapering asset buybacks first, raising interest rates second — will allow inflation to take over the U.S. economy. From Powell’s perspective, with unemployment still hovering at 5.9%, this side of the Fed’s dual mandate looks to take increased importance at this stage. Wages are growing and hires are being made; Powell sees this as a good thing, not a problem.The Fed’s Beige Book was also released today (during Powell’s testimony in Washington DC), acknowledging inflation apparent in rising prices across industries. Only some, the report stated, were able to pass through costs to consumers; the rest saw their margins cut into via higher input costs without the ability to stay competitive rising prices. Powell’s testimony today would suggest he believes the overall economy can handle such headwinds.Q2 earnings season continues tomorrow before the opening bell, with finance companies Morgan Stanley MS and U.S. Bancorp USB being joined by UnitedHealth UNH, Taiwan Semiconductor TSM and Progressive PGR. So far so good for Q2 earnings: Zacks Director of Research Sheraz Mian says the 30 S&P 500 companies already having reported are up 244% on the bottom line, 14% on the top.In addition, Thursday morning’s weekly jobless claims will greet us ahead of the open. Also Import/Export Prices, Empire State and Philly Fed surveys, and Industrial Production and Capacity Utilization. Powell’s testimony concludes Thursday, as well. By the end of just this first week of earnings season, we are likely to have a fairly articulated road map for the weeks and months ahead.Questions or comments about this article and/or its author? Click here>> Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Morgan Stanley (MS): Free Stock Analysis Report UnitedHealth Group Incorporated (UNH): Free Stock Analysis Report U.S. Bancorp (USB): Free Stock Analysis Report The Progressive Corporation (PGR): Free Stock Analysis Report Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report SPDR S&P 500 ETF (SPY): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report