Data and The Fed.
Robert R. Fragnito
Chief Operating Officer | Financial Advisor | Portfolio Manager at MCF Capital Management, LLC
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U.S. stocks finished mixed on Friday, leaving major stock averages in negative territory for the week.
Stocks traded mixed on Friday, advancing into positive territory later in the afternoon as cautious sentiment about the Federal Reserve meeting next week weighed.??
U.S. Treasury yields advanced for a fifth straight session as investors digested a light batch of economic data showing import prices rose in November. The import price index increased by 0.1% unexpectedly; economists forecasted a decline of 0.2%.
Oil futures climbed in reaction to China's economic stimulus efforts helped boost demand outlooks. However, stock indexes in China and Hong Kong fell as investors were less confident about the measures offering enough economic support.
Trading on Friday:
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Looking Ahead
Trading was fairly cautious on Friday before the big Fed meeting next week. On a positive note, stocks started gaining ground into the close as investors appear confident that the Federal Reserve will deliver a 25 basis point rate cut at its December 17-18 policy meeting. We should note that futures traders are starting to price in the likelihood of a pause in January.
Investors will be focused on the messaging from the U.S. central bank next week to determine the future pace of rate cuts. This week, global central banks were cautious about the future, citing inflation and economic uncertainty worries.
Additionally, investors are concerned about the potential impact of the new Trump administration's tariff proposals, but in our view, these fears may be overblown.
We remain positive on financial markets and agree with the market's consensus that the Federal Reserve will deliver a 25 basis point cut next week.
OUR FIRM
MCF Capital Management, LLC is an independent, family-run, financial advisory firm that manages investment portfolios for individuals and businesses through Quantitative Market Data Analysis.
THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT INVESTMENT ADVICE.?
???SOURCES:?LSEG Workspace, Dow Jones NewsPlus, MarketWatch, Wall Street Journal, Barron’s, FinancialJuice, Investing .com, CNBC, Reuters, Wells Fargo Investment Institute, TradingView, Zacks