Last week brought the conclusion to the first half of 2023. After a beaten down 2022, the stock market has made a big comeback - the S&P 500 has popped 15.9%, the Nasdaq has surged 31.7% and the Dow Jones has added 3.8%. Hopes of an end to the interest rate hiking campaign by the Federal Reserve has lifted markets thus far, including a staggering run from technology stocks - gains not seen since the early 1980's. Despite this years strong comeback, many on Wall Street are expecting some profit taking, which may even lead to a market pullback in the second half of 2023.
Economic reports from last week came back mostly positive: •Manufacturing (Dallas) - lower than expectation •Manufacturing (Richmond) - higher than expectation •Single-Family Home Values - higher than expectation •New Home Sales - higher than expectation •Pending Home Sales - lower than expectation •Personal Income - in-line with expectation •Jobless Claims - lower than expectation In a holiday-shortened week, investors will look for guidance from economic reports like Construction Spending, Vehicle Sales, Employment, Job Openings and Jobless Claims.