Investors are trying to figure out how to handle 1.) the latest move by the Federal Reserve, 2.) rising inflation and 3.) the spread of omicron. Last week, the Nasdaq declined by 3%, the Dow Jones lost 1.7% and the S&P 500 was lower by 1.9%. With 2021 soon coming to end, expect stocks to continue to be very choppy.
Economic reports from last week came back mixed: •Small Business Optimism - better than expectation •Manufacturing (New York) - better than expectation •Manufacturing (Philadelphia) - worse than expectation •Retail Sales - worse than expectation •Home Builder Sentiment - in-line with expectation •New Residential Construction - better than expectation •Jobless Claims - worse than expectation In a holiday-shortened week, investors will look for guidance from economic reports like National Activity, Consumer Confidence & Sentiment, Existing & New Home Sales, and Jobless Claims.