- Stocks On A Two Week Roll
- CPI Data On Tuesday
- Government Has Until Friday To Avoid A Shutdown
Stocks are coming off two solid weeks of gains as we near the holiday season and what has historically been a good period for stocks. The S&P 500 has been up nine out of the past ten sessions, gaining over 7% in the past couple of weeks. For the year, the S&P is up 15%. The Nasdaq Composite has fared nearly as well with gains in eight out of the past ten sessions. That has resulted in gains of 9% over two weeks and a year-to-date return of 32%. With earnings season all but over, investors now need to wait on economic data scheduled for release in the coming weeks and one final Fed meeting before closing out the year.
There is a host of economic data coming out this week, kicking off with tomorrow’s Consumer Price Index (CPI). The report is expected to show consumer prices increased 0.1% month-over-month and 3.3% year-over-year. Core CPI, which excludes prices for food and energy, is expected to be up 0.3% month-over-month and 4.1% year-over-year. As things currently stand, there is an 86% the Fed will leave rates untouched when they meet next month, according to the CME. A surprisingly strong report could change that; however, it’s unlikely a weaker than expected report would lead to a rate cut.
Also, this week, the government has until Friday to pass a spending bill. House Speaker Mike Johnson is expected to propose a continuing resolution bill that would then give members of Congress a chance to negotiate individual spending bills. On Friday, Moody’s
Taking a quick look at earnings, most of the major names have reported but this week has a slew of retail companies reporting. Home Depot will report on Tuesday before the open and then Target
A couple other odds and ends, the latest installment of the Marvel series was released over the weekend with disappointing results. The Marvels took in just $47M in U.S. sales, the weakest debut of all Marvel films. President Biden and Chinese President Xi Jinping are expected to meet this week at a summit in San Francisco. There are hopes that meeting will clear the way for Boeing
For the week, the S&P 500 SPY
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