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 came in the form of surging in retail sales. Consumers increased spending on motor vehicles, clothing, and furniture by 3% last month. In other words, the boost equates to a 36% increase annually. Since consumer spending makes up two-thirds of U.S. economic output, the increase to retail sales stoked stocks. The uptick in retail served as a bright light during an otherwise dreary week for U.S. equity markets.