Concerns of an economic slowdown and high inflation fizzled out as stocks rebounded their losses from the prior week. Corporate profits are high, expected to be the highest since 2009, and show no signs of being hurt by inflation. Then, there is the resurgence of Covid-19. Negative pandemic news has typically scared investors. Not this time. Stocks, especially technology stocks, got a nice boost, as investors moved back into a lot of the same technology stocks that performed the best during the earlier days of the pandemic (for example - Facebook, Apple, Amazon, Google and Microsoft).
Economic reports from last week came back mostly negative: •Home Builder Confidence - worse than expectation •New Housing Construction - better than expectation •Existing Home Sales - worse than expectation •National Activity - worse than expectation •Jobless Claims - worse than expectation This week, investors will look for guidance from economic reports like New & Pending Home Sales, Manufacturing, Consumer Confidence & Sentiment and Jobless Claims.