The Strength of the Market is: Strong
The year has started off rocky for investors. Stocks have notched a second straight negative week. With good reason, Americans are expecting higher long-term inflation. Last week, the latest inflation figures showed a jump of 7% year-over-year, the highest level in four decades. Even so, those results were better than some investors feared, helping markets stabilize to end the week.
Economic reports from last week came back mostly negative: •Small Business Optimism - better than expectation •Jobless Claims - worse than expectation •Retail Sales - worse than expectation •Consumer Sentiment - worse than expectation In a holiday-shortened week, investors will look for guidance from economic reports like Manufacturing, Homebuilder Sentiment, New Residential Construction, Existing Home Sales and Jobless Claims.