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Recap | Week Ahead | CPI and PPI
“Fear has a greater grasp on human action than the impressive weight of historical evidence.” – Jeremy Siegel
Last week's market recap:
- The S&P 500 closed the week up 1.98%. Year-to-date the index is up 17.57%
- NASDAQ closed the week up 3.51%. YTD the index is up 22.73%
- U.S. Aggregate Bond index was up .71%. YTD the index is flat at 0.00%
- 10-Year Treasury Rate decreased, ending the week at 4.28% down from 4.36% the prior week
- Fed Funds Target rate remains at 5.25-5.50%
- The 1-Year Treasury is yielding 5.01%
- A 6 Month Treasury is yielding 5.29%
The week ahead:
- CPI
- PPI
- Consumer Sentiment
- Big Bank Earnings (JP Morgan, Wells Fargo, and Citibank)
Markets:
U.S. stocks hit record highs and the 10 year treasury yield dropped last week after U.S. jobs data showed weaker wage growth.
CPI and PPI will be in focus this week. Also, Jerome Powell will deliver Congressional testimony. Markets will be looking at inflation data along with Powell’s comments for any hints as to when the Fed will cut rates.
Positioning:
Some may look at the chart below and think non-U.S. stocks are due for a catch up, but non-U.S. stocks are deeply underweight technology. With economic growth potentially softening, we may see mega-cap tech (especially those that can deliver on earnings) continue to perform well. In the same environment, bonds can also provide an attractive income stream. Balanced portfolios based on your specific risk and income needs remain extremely important.
Source: BlackRock Weekly Insights
As always, let us know if you have any questions.
Best,
CRA Investment Committee
Matt Reynolds CPA, CFP®
Tom Reynolds, CPA
Robert T. Martin, CFA, CFP®
Gordon Shearer Jr., CFP®
Jeff Hilliard, CFP®, CRPC®
Joe McCaffrey, CFP®
Phillip Tompkins, CFP®
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