Weekly Market Report for February 13-17, 2023
Weekly Market Report for February 13-17, 2023 Markets S&P 500 -0.4% Dow Jones Industrial Average -0.2% NASDAQ +0.02% Russell 2000 +1.25% Domestic equity markets finish the week mixed as inflation data inches lower. The consumer price index (CPI) measures increases in consumer prices, and January’s number came in at 6.4% annual increase. The number is down from December’s CPI of 6.5%. So, it’s heading in the right direction. The producer price index (PPI) measures increases in producer or manufacturer prices, and January’s PPI number came in at 6% annual increase. The PPI figure is down from December’s 6.5%. So, this too is heading in the right direction. Inflation is dropping, but not as quickly as the Federal Reserve prefers it to fall. The combination of inflation inching, rather than rushing, lower and hawkish (inclined to raise rates) Fedspeak caused stock markets to head south. Positive news…
Weekly Market Report for February 6-10, 2023
Weekly Market Report for February 6-10, 2023 Markets S&P 500 -0.7% Dow Jones Industrial Average -0.01% NASDAQ -1.32% Russell 2000 -2.9% Domestic equity markets finished the week down. The previous Friday’s payroll increase of 517,000 caused choppiness in the markets this past week. Then hawkish (inclined to raise rates) Fedspeak ensued in response to the high payroll number. Remember, the Fed wants fewer jobs, not more. So, when sustained rate increases reenter the picture stock markets tend to go south. It’s important to note that the Bureau of Labor Statistics (BLS) changed the way it calculates nonfarm payrolls. The BLS revised its methodology, as it does annually, to include an update for population and seasonal factors. Each of the revisions can inorganically boost payrolls numbers, and it did. Another major factor contributing to the week’s declining markets, and it was the Treasury yield curve. The Treasury yield curve inverted to…
Weekly Market Report for January 30-February 3, 2023
Weekly Market Report for January 30 – February 3, 2023 Markets S&P 500 +2.1% Dow Jones Industrial Average +0.1% NASDAQ +4.1% Russell 2000 +4.4% Domestic equity markets finish the week higher as the Federal Reserve slowed rate hikes to 0.25%. Federal Reserve Chairman Jerome Powell hinted at a rate hike pause following the March meeting of the Federal Open Market Committee. The news propelled stock markets higher. Other news that provided a boost to markets was the fact that the Challenger, Gray, and Christmas January Job Cuts Report showed over 102,000 job cuts during the month of January. While you and I view this as troubling, the Fed views it as a sign its rate hikes are working. One data point is still sending mixed signals, and it’s the labor market. From a Fed perspective, job cuts are moving in the right direction. The Job Openings…