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

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.