Last week brought a third straight winning week, continuing the red-hot November rally - the S&P 500 added 2.2%, while the Nasdaq jumped 2.4% and the Dow Jones advanced 1.9%. Stock gains were sparked by lower U.S. inflation data, giving hope to investors that the Federal Reserve’s tough stance on interest rate policy is ending. In November, the S&P 500 is up 7.6%, while the Dow Jones has gained 5.7% and the Nasdaq has leapt 9.9%.
Economic reports from last week came back mostly positive:
•Small Business Optimism - higher than expectation
•Inflation - lower than expectation
•Manufacturing (New York) - higher than expectation
•Manufacturing (Philadelphia) - higher than expectation
•Retail Sales - higher than expectation
•New Residential Construction - higher than expectation
•Jobless Claims - higher than expectation
In a holiday-shortened week, investors will look for guidance from economic reports like National Economic Activity, Housing, Consumer Sentiment and Jobless Claims.