Stocks finished mixed Friday, with the S&P 500 concluding its second straight weekly decline, as Federal Reserve officials reinforced the message that interest rates need to rise. Fed Bank of Richmond President Thomas Barkin said he favors a quarter-point move to give the central bank flexibility, and Fed Governor Michelle Bowman said the central bank should keep raising rates until there is much more progress on inflation. Former Treasury Secretary Lawrence Summers and economist Mohamed El-Erian were among noted market watchers warning an aggressive Fed risks damaging the economy.
For the week, The S&P shed 0.3%, the Dow Jones edged 0.1% lower, and the Nasdaq Composite climbed 0.6%.
Chart: SPX 1 hrs and 15 mins
Chart: SPX daily and 30 mins
This was only the third weekly loss for the benchmark index in 2023 so far, but it came on the heels of a more than 1% retreat last week. News last week was dominated by economic data on inflation and what it meant for the future of the Federal Reserve's path on rate hikes. It led to volatile trading sessions throughout the week in which Wall Street's major indices stumbled to several mixed finishes.
After traders back from Presidents' Day, Investors will continue to debate market direction amid an ongoing batch of mixed economic data, including last week's consumer price index report. Meanwhile, retail sales numbers showed that consumers increased their spending in nearly every category the government tracks, though the producer price index came in hotter than expected.
From the tech side of analysis, last week was a perfectly downtrend move on both 1hrs and 15 mins charts. Last Friday was quite interesting, it gave a hammer doji on the daily chart, and this hammer doji is also close to short-term support level 4030ish, therefore, its important to hold this level if the market wants to remain this bullish move in short term.
For this week, two retail heavyweights could provide the headlines for the holiday-shortened trading week.
Walmart (WMT) and Home Depot (HD) are both due to report Q4 earnings on February 21, with analysts anticipating solid numbers for the holiday quarter and cautious guidance for the year ahead.
While the retail sales report for January was stronger than anticipated, the conference call cadence from Walmart and Home Depot on current trends could impact the broad market. Notably, both stocks trail the S&P 500 Index for the early part of the year. On the economic calendar, updates include the latest PMI prints, existing home sales, FOMC minutes, Q4 GDP revision, and the highly-anticipated core CPE prices read on inflation.
For me, I prefer to join the long side of debate, since, I am still overall bullish about the market.
Please feel free to express your ideas and thoughts in the comment section.
For the week, The S&P shed 0.3%, the Dow Jones edged 0.1% lower, and the Nasdaq Composite climbed 0.6%.
This was only the third weekly loss for the benchmark index in 2023 so far, but it came on the heels of a more than 1% retreat last week. News last week was dominated by economic data on inflation and what it meant for the future of the Federal Reserve's path on rate hikes. It led to volatile trading sessions throughout the week in which Wall Street's major indices stumbled to several mixed finishes.
After traders back from Presidents' Day, Investors will continue to debate market direction amid an ongoing batch of mixed economic data, including last week's consumer price index report. Meanwhile, retail sales numbers showed that consumers increased their spending in nearly every category the government tracks, though the producer price index came in hotter than expected.
From the tech side of analysis, last week was a perfectly downtrend move on both 1hrs and 15 mins charts. Last Friday was quite interesting, it gave a hammer doji on the daily chart, and this hammer doji is also close to short-term support level 4030ish, therefore, its important to hold this level if the market wants to remain this bullish move in short term.
For this week, two retail heavyweights could provide the headlines for the holiday-shortened trading week.
Walmart (WMT) and Home Depot (HD) are both due to report Q4 earnings on February 21, with analysts anticipating solid numbers for the holiday quarter and cautious guidance for the year ahead.
While the retail sales report for January was stronger than anticipated, the conference call cadence from Walmart and Home Depot on current trends could impact the broad market. Notably, both stocks trail the S&P 500 Index for the early part of the year. On the economic calendar, updates include the latest PMI prints, existing home sales, FOMC minutes, Q4 GDP revision, and the highly-anticipated core CPE prices read on inflation.
For me, I prefer to join the long side of debate, since, I am still overall bullish about the market.
Please feel free to express your ideas and thoughts in the comment section.
