What did the week carry for the Market??
- Is inflation easing? Trends that emerged from 2022 have dominated the scene with the start of 2023: stocks rising, bond yields falling, and the U.S. dollar weakening. During the week, all eyes were on the December inflation reading, where data released matched expectations, which was a small but necessary step towards easing some of the pressures. According to the Consumer Price Index, prices in the United States increased at a 6.5% annual rate in December, which is the smallest increase since October 2021. Core inflation, which excludes the cost of food and energy, increased by 0.3% from the previous month, as predicted by economists on average.
- Reflection in the market The three main U.S. market indexes built on the favorable outcome from the previous week, with the NASDAQ gaining almost 4.8%, the S&P 500 gaining 2.7%, and the Dow gaining 2.0%. The most recent results represent a turnaround from year-end 2022 when the S&P 500 posted consecutive three-week losses. On the other hand, The most popular cryptocurrency, Bitcoin, had a 15% increase in price, reaching its highest level in more than two months at almost $19,500. But it's still a long way from Bitcoin's March 2022 top of almost $47,000.
- U.S. Treasury yields trend lower: The U.S. Treasury yield on the benchmark 10-year note fell on Friday morning to an intraday low of 3.43%, its lowest level since just after the Fed's mid-December meeting, thanks in part to the slowing inflation statistics. The investment-grade corporate bond primary calendar was active early in the week, although the level of new deals ultimately reached the low end of weekly estimates.
Check out the Top 5 stocks in each industry:
What to expect for the markets next week?
- December retail sales and producer prices: A report scheduled to be released on Wednesday by the U.S. Census Bureau that will provide an update on U.S. retail sales activity during the holiday shopping season. On the same day as well, the Bureau of Labor Statistics (BLS) will issue the latest Producer Price Index (PPI).?
- Busy week for earnings: Despite the U.S. markets closing on Monday for Martin Luther King’s day, the week will be busy with earnings reports, due from big banks and financial sector firms, including Morgan Stanley, Goldman Sachs, Charles Schwab, PNC Bank, and Discover Financial Services, among others. We’ll also get earnings from United Airlines, American Airlines, Procter & Gamble, and Netflix.?
