The Strength of the Market is: Weak
In spite of stronger-than-expected jobs numbers, last week, the S&P 500 fell 1.2%, while the Dow Jones and the Nasdaq each lost nearly 1%. In this current market environmnet, good news is bad news and, unfortunately, for investors, good economic news likely ends any hope that the Federal Reserve will consider pausing interest rate hikes. As interest rates go higher, there is fear that the economy could tip it into a recession.
Economic reports from last week came back mixed: •Single-Family Home Values - worse than expectation •Consumer Confidence - better than expectation •Manufacturing (Dallas) - worse than expectation •Job Openings - in-line with expectation •Construction Spending - worse than expectation •Vehicle Sales - worse than expectation •Private Employment - worse than expectation •Total Employment - better than expectation •Labor Productivity - better than expectation •Jobless Claims - better than expectation This week, investors will look for guidance from economic reports like Consumer Credit, Consumer Sentiment and Jobless Claims.