All the major stock averages finished last week lower. The Dow Jones was down 0.2%, the S&P 500 was off 0.9% and Nasdaq fell nearly 1.6%. Investors are weighing the likelihood of larger interest rate hikes from the Federal Reserve, to go along with concerns of a looming recession. Although, at the end of the week, promising economic data and strong corporate earnings gave some needed relief.
Economic reports from last week came back mostly positive: •Small Business Optimism - worse than expectation •Retail Sales - better than expectation •Manufacturing (New York) - better than expectation •Consumer Sentiment - better than expectation •Jobless Claims - worse than expectation This week, investors will look for guidance from economic reports like Housing, Manufacturing and Jobless Claims.