07|26|2022

Markets Move North? | July 22, 2022

AUTHOR: Jason Roque, CFP®, APMA®, AWMA®
TITLE:   Investment Adviser Rep – CCO
TAGS: S&P 500, NASDAQ, CPI, PPI, Oil, Retail Sales, Sentiment
  

Markets lost ground for the second week. Does this say more about the last two weeks or the week ahead?

Monday                       S&P 500 0.11% | NASDAQ 0.41%

Markets opened the week in a muted tone. There was very little movement as Consumer Price Index (CPI) data was awaited on Tuesday.

Tuesday                        S&P 500 1.12% | NASDAQ 1.54%

CPI data for February showed inflation inching up slightly. Markets opened in the red on the news, but an earnings beat by Oracle allowed equities to march higher.

Wednesday                 S&P 500 0.19% | NASDAQ 0.54%

Crude oil inventories fell when a surplus was expected, which will further support higher prices for energy. Interest rates climbed on the back of the higher than expected CPI data from Tuesday. Growth stocks lagged as the data implies the Federal Reserve Board (FRB) will be less likely to cut rates.

Thursday                     S&P 500 0.29% | NASDAQ 0.30%

The Producer Price Index (PPI), a wholesale inflation gauge, rose in February to 1.6%. Retail sales advanced less than expected and initial jobless claims remained benign. A strong jobs market with firming inflation does not bode well for future rate cuts. Markets sold on the news, though not aggressively, as hope remains for FRB rate cuts later in the year.

Friday                          S&P 500 0.65% | NASDAQ 0.96%

Consumer sentiment is projected to fall to 76.5 in March from 76.9 in February. While lower, February and March are the first readings in the 70’s since August of last year. The week closed out on a sour note as commodity prices rise with inflation data. Further concerns mount that the inflation fight may have longer to go before a rate cut.

Conclusion                  S&P 500 0.13% | NASDAQ 0.70%

This is the first back-to-back losing weeks for the market in 2024. This leads to an FRB meeting week where guidance about potential future rate cuts will be hotly watched. Not only is the FRB meeting next week, but there is very little in the way of economic data for the week. This puts all the more focus on the FRB. 

~ Your Future… Our Services… Together! ~

Your interest in our articles helps us reach more people.  To show your appreciation for this post, please “like” the article on one of the links below:

Facebook | Twitter | LinkedIn

FOR MORE INFORMATION:

If you would like to receive this weekly article and other timely information follow us, here.

Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long-term holding strategy is the best strategy in any market environment.
Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.

Markets moved north last week, but what does recent history tell us we should expect in response?

Monday   S&P 500 0.84% | NASDAQ 0.81%

The week opened with the S&P 500 1% in the green but faded through the afternoon hours. Apple (AAPL) announced that they will be slowing their hiring for the remainder of this year and 2023. This is a warning signal for what may be to come for other companies.

Tuesday   S&P 500 2.73% | NASDAQ 3.09%

A wave of earnings released on Tuesday buoyed the markets. The NASDAQ outpaced the S&P for growth as major communications company earnings came into focus.

Wednesday S&P 500 0.59% | NASDAQ 1.58%

Growth leadership continued on Wednesday. Fears of a recession have stoked larger flames around yields not rising as far as originally thought. A recession would pressure the Federal Reserve Bank (FRB) to be more passive.

Thursday   S&P 500 0.99% | NASDAQ 1.36%

Markets performed in the green for the day, however fixed income havens performed well. This is an underlying signal of conservativeness within a bear market rally. Bonds rallied on what appeared to be recession fears, while stocks performed well on second quarter earnings data.

Friday   S&P 500 0.92% | NASDAQ 1.86%

Manufacturing data beat expectations, however, services data slipped into contractionary territory unexpectedly for June. Services make up the vast majority of our economy. Investors moved in a risk off manner as a result. NASDAQ stocks, which led the way throughout the week, led the march lower.

Conclusion   S&P 500 2.55% | NASDAQ 3.33%

Friday’s negativity was not enough to dampen all the growth from the week. The NASDAQ led the way, rising more than 3%. This has now turned into a see-saw market; one week up, the next down. As of late, the downs have not been as deep. The earnings calendar is heavy this week but additionally, the Federal Reserve Board (FRB) is meeting. That will be watched closely as a 0.75% hike is expected.

~ Your Future… Our Services… Together! ~

Your interest in our articles helps us reach more people.  To show your appreciation for this post, please “like” the article on one of the links below:

Facebook | Twitter | LinkedIn

FOR MORE INFORMATION:

If you would like to receive this weekly article and other timely information follow us, here.

Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long-term holding strategy is the best strategy in any market environment.
Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.