The Strength of the Market is: Strong
The Dow Jones has been up four straight weeks and the S&P 500 and Nasdaq have been positive four out of the last five weeks. So far, quarterly corporate earnings have been stronger-than-expected and inflation has been coming down. For investors, the primary concerns are 1.) the possibility of inflation staying stubbornly high, which would lead to higher interest rates for longer and 2.) a much slower economic growth.
Economic reports from last week came back mixed: •Small Business Optimism - higher than expectation •Retail Sales - lower than expectation •Consumer Sentiment - higher than expectation •Jobless Claims - higher than expectation This week, investors will look for guidance from economic reports like Manufacturing, Housing and Jobless Claims.