Stocks retreated last week as a surge in interest rates prompted broader concerns about the state of the economy. The rate on the 10-year Treasury briefly went above 5%, for the first time in 16 years. The 30-year US Treasury hit its highest level since 2007 and the 30-year fixed mortgage rate reached 8%, a level not seen since 2000. With concerns of higher rates, last week, the S&P 500 lost 2.4%, the Dow Jones slipped 1.6% and the Nasdaq was lower by 3.2%.
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
•New Residential Construction - lower than expectation
•Existing Home Sales - higher than expectation
•Jobless Claims - lower than expectation
This week, investors will look for guidance from economic reports like National Economic Activity, Manufacturing, Housing, Personal Income, Consumer Sentiment and Jobless Claims.