Indices
- Dow 41,938, -793 or -1.86%.
- Nasdaq 19,161, -460 or -2.34%.
- S&P 5,827, -116 or -1.95%.
- MSCI EAFE 2244.94, +9.23or +0.41%.
- USD10Y 4.776%, +18.0bp or +3.92%.
- WTI Crude $76.57/bbl, +$2.91 or +3.95%.
Inflation Fears Dampen Market’s Animal Spirits
Neither a record revenue print from chipmaker Foxconn, nor record strength in the services sector, nor a strong jobs report could buoy the markets this past week. Although the record revenues at Foxconn did boost the chipmaking sector on Monday, by Tuesday the rally was a distant memory as the ISM Services Survey reported increasing prices in December. This data point along with an extremely strong Non-Farm Payrolls report on Friday had all the major U.S. indices trading down and the U.S. 10-year treasury yield spiking higher over inflation fears and the likelihood that the Fed will slow their interest rate cutting cycle.
The Upcoming Week: Jan 13 – Jan 17
Earnings kick off this week with the money center banks reporting along with shipping/logistics company JB Hunt. Inflation data will highlight the economic reports as both wholesale and retail prices along with December Retail Sales are forthcoming.
Economic Calendar
- Monday – N/A. Earnings: N/A.
- Tuesday – December Producer Price Index, Fed Beige Book. Earnings: N/A.
- Wednesday – December Consumer Price Index. Earnings: JPMorgan Chase (JPM), Citigroup (C), Blackrock (BLK), Wells Fargo (WFC).
- Thursday – Initial Jobless Claims, December U.S. Retail Sales. Earnings: Bank of America (BAC), JB Hunt (JBHT).
- Friday – N/A. Earnings: N/A.
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