The Strength of the Market is: Strong

Stocks finished the week slightly lower following the release of the most recent inflation data. August’s personal consumption expenditures price index, the Federal Reserve’s preferred inflation measure, showed that core inflation, a measure excluding food and energy costs, ran at a 2.9% seasonally adjusted annual rate, which was in-line with economist expectations.

Economic reports from last week came back mixed:

•Manufacturing (Richmond) - lower than expectation

•Existing Home Sales - higher than expectation

•New Home Sales - higher than expectation

•Gross Domestic Product - higher than expectation

•Consumer Sentiment - lower than expectation

•Personal Income - higher than expectation

•Jobless Claims - lower than expectation

This week, investors will look for guidance from economic reports like Manufacturing, Housing, Consumer Confidence, Job Openings, Employment, Construction Spending, Vehicle Sales and Jobless Claims.