Market Insights - January 14, 2022

MARKETS RETREAT FOR THE SECOND WEEK IN A ROW, AS INFLATION HITS HIGHEST LEVEL IN DECADES & THE BIG BANKS DISAPPOINT 

The U.S. equity indices recorded their second weekly loss to start 2022, driven by inflation worries and disappointing earnings from the big banks. While inflation dominated the headlines – with the Consumer Price Index and Producer Price Index coming in much hotter than expected – the big banks disappointed on Friday after reporting lower profits in the final quarter of 2021. The Energy sector outperformed all others, driven by a jump in oil prices, pushing oil to prices not seen since last fall. And the defensive names (Utilities and Real Estate) underperformed on the week too.

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Source: eMoney

Market Insights - January 7, 2022

MARKETS RETREAT ON THE WEEK, AS GROWTH AND TECH ARE HIT ESPECIALLY HARD AFTER THE FED ADOPTS A HAWKISH STANCE

Stocks hit record highs at the beginning of the week, but then the minutes from the Fed’s December FOMC meeting were released and Wall Street rotated away from the growth and tech names into the value and defensive plays as bond yields increased. NASDAQ was hit especially hard, as it suffered its biggest one day decline since February of last year, as rising rates can take a toll on future earnings. Energy stocks on the other hand, had a fantastic week, as the price of WTI Crude seems headed for that $80/barrel threshold.

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Source: eMoney

Market Insights - January 5, 2022

Manufacturing Sector Shows 19th Consecutive Month of Growth

The December Manufacturing ISM Report On Business was the latest indicator suggesting that the U.S. manufacturing sector (which helps drive the U.S. economy) is digging out of the deep hole created by COVID-19. But the data is also a stark reminder of the challenges we have with supply chains and rising commodity prices.

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Source: eMoney

Market Insights - December 31, 2021

MARKETS END THE WEEK MOSTLY POSITIVE AS HOUSING AND JOBLESS CLAIMS SURPRISE ON THE UPSIDE AMIDST MUTED TRADING VOLUMES

U.S. stocks continued last week’s rebound, except for the tech-laden NASDAQ which slipped a bit. The S&P 500, DJIA and Russell 2000 all ended the week positive, as Wall Street closed the books on the week, the month, the quarter and the year. There was not a lot of economic news that pushed markets around, but there was some rebalancing as the quarter and year came to a close. Value outpaced growth names and the mega-caps outperformed the smaller and mid-size names on the week.

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Source: eMoney

Market Insights - December 29, 2021

Housing Stays Red-Hot: Prices Up 1% From Last Month and Over 17% From Last Year

On Tuesday, the Federal Housing Finance Agency announced that prices rose nationwide in October, up 1.1% from the previous month, according to its latest Federal Housing Finance Agency House Price Index. House prices rose 17.4% from October 2020 to October 2021. The previously reported 0.9% price change for September 2021 remained unchanged.

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Source: eMoney

Market Insights - December 24, 2021

MARKETS JUMP HEADING INTO THE CHRISTMAS HOLIDAY AS FEARS OF OMICRON SUBSIDE AND 3Q GDP INCHES HIGHER

U.S. stocks rebounded from the last week’s losses, as Wall Street seemed eager to “buy the dip” as fears of the new omicron variant waned. Volatility peaked Monday late afternoon, but trended down all week as overall trading volumes were low heading into the Christmas holiday, with markets closed on Friday.

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Source: eMoney

Market Insights - December 21, 2021

Current Account Deficit Widens by $16.5 Billion, Up 8.3% from 2Q

On Tuesday, the BEA reported that the U.S. current-account deficit widened by $16.5 billion – that’s 8.3% – to $214.8 billion in the third quarter of 2021. For comparison the second-quarter deficit was $198.3 billion. Further, the third-quarter deficit was 3.7% of current-dollar gross domestic product, up from 3.5% in the second quarter.

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Source: eMoney

Market Insights - December 17, 2021

MARKETS RETREAT AS THREE RATE HIKES IN 2022 ARE MORE LIKELY AND AS PRODUCER PRICES SURGE 9.6% YEAR-OVER-YEAR

Equity markets retreated on the week, driven in part by the expected-tightening-course of the Federal Reserve and fears about how much the omicron variant might lead to lockdowns amidst the holiday season. While the Federal Reserve’s actions were widely anticipated, Wall Street reversed its recent course and sold more of the growth and tech names, thinking that rising rates would eat into future profits of these companies. Accordingly, the growth and tech-laden NASDAQ was hit the worst, dropping 3%, which is roughly 7% off from its recent high.

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Source: eMoney

Market Insights - December 15, 2021

Producer Price Index Leaps 0.8% in November and 9.6% for 12-Months

The Producer Price Index is a family of indexes that measures the average change over time in the prices received by domestic producers of goods and services. Compiled by the U.S. Bureau of Labor Statistics, PPIs measure price change from the perspective of the seller. The PPI measures prices at the producer level before they are passed along to final consumers. And by understanding price pressures and trends, investors can anticipate inflationary consequences in coming months. On Tuesday, the U.S. Bureau of Labor Statistics announced that the Producer Price Index for final demand increased 0.8% in November

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Source: eMoney

Market Insights - December 10, 2021

Markets Jump as S&P 500 Notches New Record

If you just read the economic data reports on the week, you might have expected the markets to retreat, but they did everything but retreat as the S&P 500 recorded its best weekly gain since February on its way to a new record high. Many suggest that the markets moved so much because fears over the Omicron variant seemed to dwindle, especially when many of the pharmaceutical companies reported that they believe their vaccines will be effective against this latest variant.

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Source: eMoney

Market Insights - December 8, 2021

Productivity Decrease is the Largest Since 1960 as Labor Costs Jump

On Tuesday, the U.S. Bureau of Labor Statistics reported that nonfarm business sector labor productivity decreased 5.2% in the third quarter of 2021, as output increased 1.8% and hours worked increased 7.4%.

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Source: eMoney

Market Insights - December 3, 2021

It was another volatile week for Wall Street, as the VIX – aptly named the Fear Index – trended up all week and ended at a level not seen since late January of this year.

The markets seemed to struggle with figuring out how the Omicron variant would impact markets and economies and at times it seemed as if the number of naysayers equaled the number of those that weren’t too worried. But when Fed Chair Powell suggested that the word “transitory” was no longer appropriate when discussing inflation, it seemed as if the naysayers gained converts quickly. Especially when Powell suggested that the Fed might accelerate the tapering of its bond purchases at a faster rate than previously discussed. Wall Street analysts are interpreting this acknowledgement as a sign that the Fed’s timeline for increasing short-term rates is sooner than previously thought.

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Source: eMoney

Market Insights - December 1, 2021

The Conference Board was founded in 1916 by a group of CEOs “concerned about the impact of workplace issues on business, and with a desire for greater cooperation and knowledge sharing among businesses.”

Every month, the Conference Board, in conjunction with Nielsen, compiles a survey of consumer attitudes on the economy in order to create its Consumer Confidence Index, which captures “consumers' perceptions of current business and employment conditions, as well as their expectations for six months hence regarding business conditions, employment, and income.”

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Source: eMoney

 

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