Markets closed higher for the week after a stellar rally on Thursday that saw big tech stocks soar amid weaker-than-expected consumer price index (CPI) data for October. The S&P 500 closed more than 5% higher for the week, its best week since June. Bond yields and the U.S. dollar fell as investors hoped CPI news could slow the pace of the Federal Reserve’s interest rate hike next month. We also received updates regarding cost-cutting initiatives at two tech club holding companies: Meta Platforms (META) announced the layoff of more than 11,000 employees and cut its spending outlook. Meanwhile, Club Holding Amazon (AMZN) is reportedly conducting a broad cost-cutting review, according to The Wall Street Journal. While we’re not off the hook – geopolitical challenges persist, while inflation and the dollar remain at multi-decade highs – this week’s updates certainly give cause for optimism. But we think more data is needed before the Fed can tone down its hawkish commentary on rates. Given the magnitude of the rally, we have provided a quick update on the 32 stocks in our portfolio. And I look forward to discussing these dynamics and more at the “monthly meeting” next week. All sectors ended the week higher, led by technology, communication services and materials. Meanwhile, the US dollar index retreated around the 106 level. Gold rose to around $1,765 an ounce. West Texas Intermediate crude prices retreated to around $89 a barrel, while the 10-year Treasury yield fell to around 3.8%. Review The interests of Club Disney (DIS) and Wynn Resorts (WYNN) published quarterly results last week. On the macro side, updates have been sparse this week. But October’s CPI report was a huge tailwind for major indices as the key inflation reading came in below expectations. The stock was 7.7% year-on-year, while the base rate, which removes the impact of food and energy prices due to their volatile nature, came in at 6.3% compared to a year ago. Both readings were below expectations by 7.9% and 6.5%, respectively. On Thursday, initial jobless claims for the past week came in at 225,000, up 7,000 from the previous week and above expectations of 225,000. jobless claims higher than expected is exactly what investors have been looking for. What to expect Quarterly results continue into next week. In the portfolio, we will hear the companies TJX (TJX) on Wednesday before the opening bell, and Cisco Systems (CSCO) and Nvidia (NVDA) the same day after the closing bell. Here are some other earnings reports and economic indicators to watch in the week ahead: Monday November 14 Before the bell: AECOM (ACM), Dentsply Sirona (XRAY), 360 Finance (QFIN), MINISO Group (MNSO), Monday. com (MNDY), Oatly (OTLY), Thoughtworks (TWKS), Tower Semi (TSEM), Venator Materials (VNTR) After the bell: AMMO (POWW), Azenta (AZTA), BuzzFeed (BZFD), HighPeak Energy (HPK) , Westinghouse Solar (WEST) Tuesday, November 15 Before the bell: Walmart (WMT), Aramark (ARMK), Berry Global (BERY), Endava (DAVA), Energizer (ENR), Evoque Water (AQUA), HUYA (HUYA), Krispy Kreme (DNUT), Valvoline (VVV) After the bell: Advance Auto Parts (AAP), Atento (ATTO), Ferroglobe (GSM) 8:30 a.m. ET: Producer Price Index Wednesday, November 16 Before the bell: Target ( TGT), ZIM Integrated Shipping (ZIM), Arcos Dorados (ARCO), Grab Holdings (GRAB) After the Bell: Bath & Body Works (BBWI), Bowlero (BOWL), Hillenbrand (HI), Sonos (SONO) 8:30 a.m. HE: Retail sales j Thursday, November 17 Before the bell: Alibaba (BABA), BJ’s Wholesale (BJ), BrightView (BV), Cellebrite (CLBT), Dole (DOLE), Kohl’s (KSS), Macy’s (M), Weibo (WB) After the bell : Applied Materials (AMAT), Dolby Labs (DLB), Farfetch (FTCH), Gap (GPS), Keysight Tech (KEYS), Palo Alto Networks (PANW), Post (POST), Ross Stores (ROST) 8:30 a.m. ET : Initial jobless claims 8:30 a.m. ET : Housing Begins Friday, November 18 Before the bell: Buckle (BKE), Foot Locker (FL), JD.com (JD), Twist Bio (TWST), Spectrum Brands (SPB) 10 a.m. ET: Existing Home Sales (See here for a full list of Jim Cramer’s Charitable Trust stocks.) As a CNBC Investing Club subscriber with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS, OR IS CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
People walk outside the New York Stock Exchange on July 25, 2022 in New York City.
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Markets closed higher for the week after a stellar rally on Thursday that saw big tech stocks soar amid weaker-than-expected consumer price index (CPI) data for October. The S&P 500 closed more than 5% higher for the week, its best week since June. Bond yields and the U.S. dollar fell as investors hoped CPI news could slow the pace of the Federal Reserve’s interest rate hike next month.
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