Wall Street wrapped up one of its worst weeks in months on reactions to ugly warnings about the global economy, hotter-than-expected inflation report in the US and concerns that the Federal Reserve will be forced to cause a recession to cool down prices. The summer stock market comeback rally looks increasingly like a bear market bounce as, last week, the Dow Jones declined 4.1%, the S&P 500 lost 4.8% and the Nasdaq Composite dropped roughly 5.5%.
Economic reports from last week came back mostly positive: •Small Business Optimism - better than expectation •Manufacturing (New York) - better than expectation •Manufacturing (Philadelphia) - worse than expectation •Jobless Claims - better than expectation •Retail Sales - better than expectation •Consumer Sentiment - worse than expectation This week, investors will look for guidance from economic reports like Housing, Manufacturing and Jobless Claims.