What did the week carry for the Market??
- What about inflation now? Data last week showed that despite decent GDP growth to finish 2022, underlying trends indicate consumer spending is softening. The U.S. Federal Reserve’s data tracking inflation showed a further cooling of inflation. The government reported on Friday that its Personal Consumption Expenditures Price Index rose at an annual 5.0% rate in December, down from 5.5% in November.? Excluding food and energy, prices rose at a 4.4% annual rate—the lowest in 14 months.?
- A New Boost for Stocks: Since the beginning of 2023, stocks were up roughly 6% so far. Historically, strong January returns have often been accompanied by positive full-year returns. The NASDAQ increased by more than 4% for its fourth positive weekly result in a row while the S&P 500 and the Dow posted smaller gains, rebounding from declines the previous week. With a couple of trading days left in January, the NASDAQ was on track to record its strongest monthly result since last July.
- Positive numbers in growth: For the third week in a row, a U.S. large-cap growth stock benchmark outperformed its value counterpart by a wide margin, reversing the trend from 2022, when the value equity style dominated. Over the past three weeks, the growth benchmark gained 7.9% while its value counterpart added 2.1%.???
Check out the Top 5 stocks in each industry:
What to expect for the markets next week?
- Eyes on Friday’s Jobs Report: A labor market update due out on Friday will be the most closely watched economic report of the week. The release covering January follows a report that showed the economy generated 223,000 new jobs in December—the fifth consecutive month with job gains in the 200,000 to 300,000 range and the 24th month in a row with at least 200,000.?
- Earnings Reports: In addition to the labor market report, the coming week will include FOMC’s policy meeting taking center stage; in addition to big tech earnings such as Apple, Google, Amazon, and Meta Platforms. ExxonMobil, Pfizer, UPS, McDonald’s, Caterpillar, Starbucks, and automakers Ford and General Motors will also report next week, among many others.
