Strength of the Market
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The Strength of the Market is: Weak

Another brutal week for stocks. Investors are becoming increasingly worried about the potential for an economic slowdown. Last week, the S&P 500 was down 5.8%, the Dow Jones was lower by 4.8% (its lowest level since January of 2021) and the Nasdaq Composite slipped 4.8%. The Federal Reserve Bank is committed to bringing down inflation and hiked interest rates by 0.75% last week. They are focused on returning inflation to their 2 percent objective, which is quite far from the current inflation numbers of 8.6%. When will a recession arrive? It just might already be here.

Economic reports from last week came back mostly negative: •Small Business Optimism - better than expectation •Manufacturing (New York) - worse than expectation •Manufacturing (Philadelphia) - worse than expectation •Retail Sales - worse than expectation •Homebuilder Sentiment - worse than expectation •New Residential Construction - worse than expectation •Jobless Claims - worse than expectation In a holiday-shortened week, investors will look for guidance from economic reports like National Economic Activity, New & Existing Home Sales, Manufacturing, Consumer Sentiment and Jobless Claims.