Last week, all major stock averages posted losses - the Dow Jones ended 0.01% lower, the S&P 500 lost 0.69% and the Nasdaq was down 1.57%. After positive inflation news and a big bounce the previous week, investors started to reset expectations and are shifting to a 'back-to-reality' viewpoint. A readjustment period may be beginning as Federal Reserve officials have been reiterating their stance on a continuance of increased interest rates.
Economic reports from last week came back mixed: •Manufacturing (New York) - higher than expectation •Manufacturing (Philadelphia) - lower than expectation •Retail Sales - higher than expectation •Homebuilder Sentiment - lower than expectation •Existing Home Sales - higher than expectation •New Residential Construction - higher than expectation •Jobless Claims - in-line with expectation In a Holiday-shortened week, investors will look for guidance from economic reports like National Economic Activity, Manufacturing, Housing, Consumer Sentiment and Jobless Claims.