Last week, investors digested reports of inflation and corporate earnings. Some encouraging news was received on inflation as wholesale prices unexpectedly declined by 0.1% in December (Though, consumer prices were modestly higher compared to what Wall Street was forecasting). The path continues to be clear for the Federal Reserve to begin cutting interest rates in 2024 and to slow the pace at which they shrink their balance sheet. For the week, the S&P 500 climbed 1.8%, the Nasdaq added 3.1% and the Dow Jones inched higher by 0.3%.
Economic reports from last week came back mostly positive:
•Consumer Credit - higher than expectation
•Small Business Optimism - higher than expectation
•Inflation (Consumer) - higher than expectation
•Inflation (Producer) - lower than expectation
•Jobless Claims - lower than expectation
In a holiday-shortened week, investors will look for guidance from economic reports like Manufacturing, Retail Sales, Housing and Jobless Claims.
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