Stocks rose for a third week in a row as inflation is at its lowest in nearly two years - last week, the Dow Jones was up 0.66%, the S&P advanced 1.01% and the Nasdaq was up 2.02%. Cooling inflation and stronger-than-expected earnings reports just might be able to make the U.S. avoid recession and send stocks to new highs.
Economic reports from last week came back mostly negative: •National Economic Activity - lower than expectation •Manufacturing (Richmond) - lower than expectation •New Home Sales - lower than expectation •Pending Home Sales - in-line with expectation •Personal Income - lower than expectation •Consumer Sentiment - lower than expectation •Jobless Claims - lower than expectation This week, investors will look for guidance from economic reports like Manufacturing, Job Openings, Construction Spending, Vehicle Sales, Employment, Labor Productivity and Jobless Claims.