Last week, the post-election rally fizzled - the S&P 500 posted a weekly loss of 2.1%, the Nasdaq Composite slid about 3.2% and the Dow Jones fell 1.2%. While stocks can easily continue to move higher, going up in a straight line should not be expected. Now, the Federal Reserve doesn't seem to be in a hurry to continue interest rate decreases. The Fed's Jerome Powell stated that the economy’s strong growth will permit them to take their time as they decide the extent to which they reduce rates in the future - a December interest rate cut may no longer be a certainty.
Economic reports from last week came back mostly positive:
•Small Business Optimism - higher than expectation
•Inflation (Consumer) - lower than expectation
•Inflation (Producer) - in-line with expectation
•Retail Sales - higher than expectation
•Manufacturing (New York) - higher than expectation
•Jobless Claims - lower than expectation
This week, investors will look for guidance from economic reports like Housing, Manufacturing, Consumer Sentiment and Jobless Claims.
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