Concerns over a resurgence of Covid-19 has re-emerged. Last week, international stocks took a hit after many European countries - Austria, Germany, Ireland, Netherlands, etc. - announced various covid-related restrictions. Although, not all news has been concerning: 1.) Corporate earnings have been much better than expectation, with companies being on track to grow their profits by over 42% compared to this time last year, 2.) Customers are still shopping even with high inflation and 3.) The House of Representatives voted to pass President Biden’s $1.7 trillion social safety net bill.
Economic reports from last week came back mostly positive:
•Manufacturing (New York) - better than expectation
•Manufacturing (Philadelphia) - better than expectation
•Retail Sales - better than expectation
•Homebuilder Sentiment - better than expectation
•New Residential Construction - better than expectation
•Jobless Claims - worse than expectation
In a busy holiday-shortened week, investors will look for guidance from economic reports like National Activity, Existing Home Sales, New Home Sales, Manufacturing, Consumer Confidence and Jobless Claims.