The Strength of the Market is: Strong

Last week, the S&P 500 reached another record high and notched its third consecutive positive week. For the week, the S&P 500 increased by 0.4% and the Nasdaq was higher by 0.1%. The Dow Jones was down 0.6%. Pressure, at least temporarily, has been taken off the Federal Reserve. The latest inflation numbers have either been in-line with or lower than economist expectations, which should keep interest rates steady, for now.

Economic reports from last week came back mixed:

•Small Business Optimism - higher than expectation

•Existing Home Sales - higher than expectation

•Inflation (Consumer) - in-line with expectation

•Inflation (Producer) - lower than expectation

•Retail Sales - lower than expectation

•Consumer Sentiment - lower than expectation

•Jobless Claims - higher than expectation

This week, investors will look for guidance from economic reports like Manufacturing, Housing and Jobless Claims.