The Strength of the Market is: Strong
Omicron variant concerns and a disappointing jobs report brought another roller-coaster week for stocks. Last week, all major stock indexes were down - the Dow Jones down 0.9%, the S&P 500 down 1.2% and the Nasdaq Composite down 2.6%. Hotels, airlines, cruise lines and casinos were the biggest losers. Now, the economy must try to respond to omicron, continue to battle inflation and deal with ongoing supply shortages.
Economic reports from last week came back mostly negative: •Pending Home Sales - better than expectation •Single-Family Home Values - worse than expectation •Manufacturing (Dallas) - worse than expectation •Consumer Confidence - worse than expectation •Private Employment - better than expectation •Total Employment - worse than expectation •Construction Spending - worse than expectation •Vehicle Sales - worse than expectation •Jobless Claims - better than expectation This week, investors will look for guidance from economic reports like Consumer Credit, Job Openings, Jobless Claims and Consumer Sentiment.