It’s been a bumpy week for stocks. The market came under pressure at the start of the week as investors worried that the elevated wage pressure seen in the November jobs report could push the Federal Reserve to raise interest rates higher than scheduled for next year to fight inflation. After a brief midweek respite, Wall Street closed lower on Friday. The Dow Jones Industrial Average had its worst week since September. After a warmer-than-expected November reading on producer prices, investors and the Fed will seek more clarity around the inflation picture on Tuesday when the government releases its consumer price index for the past month. The next day, Fed Chairman Jerome Powell is expected to announce a decision on the next stage of rate hikes. The central bank’s policy arm is currently expected to raise rates by 50 basis points, down slightly after four consecutive increases of 75 basis points each. But what remains a question mark is how far the Fed will raise rates and for how long, given the current economic downturn. While there are still plenty of unknowns regarding the Fed’s policies, which it says are data dependent, we’ll get an updated read on how members of the Federal Open Markets Committee (FOMC) view rate hikes through 2023. looking to see signals on how the Fed views real gross domestic product (GDP), the jobless rate and core inflation next year. Last week, defensive sectors like utilities and healthcare outperformed, with real estate also faring better. Energy led the way lower, followed by Communication Services and Consumer Discretionary. Meanwhile, the US Dollar Index rose slightly but is still below 105. Gold closed the week at around $1,810 an ounce. West Texas Intermediate crude oil fell from around $80 a barrel to $70 amid concerns about the outlook for the global economy. The 10-year Treasury yield rose this week amid renewed expectations that the Fed will have to raise interest rates higher than expected. Review In the portfolio, we had the quarterly results of Costco Wholesale (COST) on Thursday evening. The wholesaler reported a mixed quarter. Two key economic reports were released on Monday: New orders for US manufactured goods rose 1% in October. The figure was above market expectations of a 0.7% gain and follows a slight rise of 0.3% the previous month. The ISM Purchasing Managers’ Index (PMI) rose to 56.5 in November. This figure was above expectations of 53.3 and represents a big jump from the 2-year low of 54.4 recorded in October. On Thursday, the Labor Department said initial jobless claims for the week ending Dec. 3 were 230,000, up 4,000 from the previous week and in line with analysts’ forecasts. Finally, on Friday, the Labor Department released its monthly Producer Price Index which, as mentioned above, showed that wholesale prices rose more than expected in November. The index climbed 0.3% for the month, ahead of analysts’ forecasts for a 0.2% gain. What lies ahead There are only a handful of earnings reports left by the end of the year. No club holdings are scheduled for next week, but Eli Lilly (LLY) will hold a 2023 guidance call at 9 a.m. ET on Tuesday. Here are some other earnings reports and economic numbers to watch in the week ahead: Monday, Dec. 12 After the Bell: Oracle (ORCL), Coupa Software (COUP) Tuesday, Dec. 13 8:30 a.m. ET: FOMC meeting begins on the consumer price index Wednesday, December 14 After the bell: end of Lennar (LEN), Trip.com (TCOM) FOMC meeting; rate decision at 2 p.m. ET followed by Powell’s press conference Thursday, Dec. 15 Before the bell: Jabil (JBL) After the bell: Adobe (ABDE) 8:30 a.m. ET: Initial UI claims 8:30 a.m. ET: Retail Sales 9:30 a.m. ET: Industrial Production Friday, Dec. 16 Before the Bell: Accenture (ACN), Darden Restaurants, Winnebago (WGO) 9 a.m. ET: Markit Manufacturing PMI (See here for a full list of Jim’s stocks) Cramer’s Charitable Trust.) As a CNBC Investing Club subscriber with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS, OR IS CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
Federal Reserve Board Chairman Jerome Powell speaks during a press conference May 1, 2019 in Washington, DC.
Mark Wilson | Getty
It’s been a bumpy week for stocks.
The market came under pressure at the start of the week as investors worried that the elevated wage pressure seen in the November jobs report could push the Federal Reserve to raise interest rates higher than scheduled for next year to fight inflation. After a brief midweek respite, Wall Street closed lower on Friday. The Dow Jones Industrial Average had its worst week since September.
#Dow #worst #week #September #investors #anticipate #CPI #Fed #meeting