Stocks were lower last week, as investors drew conflicting conclusions about what the latest jobs numbers mean for future Federal Reserve interest rate hikes. The Dow Jones was down 1.4%, the S&P 500 lost 3.35% and the Nasdaq fell 5.65% - breaking multi-week winning streaks for stocks. Focus now shifts to this week’s inflation report. A drop in inflation could fuel a shift in stock market performance. Along with Thursday’s inflation report, investors will be watching the results of the midterm elections.
Economic reports from last week came back mostly positive: •Manufacturing (Dallas) - lower than expectation •Job Openings - higher than expectation •Construction Spending - higher than expectation •Vehicle Sales - higher than expectation •Private Employment - higher than expectation •Total Employment - higher than expectation •Labor Productivity - lower than expectation •Jobless Claims - lower than expectation This week, investors will look for guidance from economic reports like Consumer Credit, Small Business Optimism, Consumer Sentiment and Jobless Claims.