All major stocks closed higher for the week thanks to a Friday afternoon rally that pulled the Dow Jones back into positive territory. Driving the move were several key economic reports, including the November ADP jobs and nonfarm payrolls report and the October spending report. The most important thing, perhaps, is the statement from Federal Reserve Chair Jerome Powell at The Brookings Institute, in which he indicated that the pace of interest rate hikes could slow down as soon as December – although he expected the policy to remain limited for some time; the Fed “will stay the course until the job is done,” he said. The data came after a better-than-expected ADP jobs report, but before a stronger-than-expected nonfarm payrolls report. With these kinds of mixed signals, expect more market volatility as investors remain on the lookout for more convincing signs that the Fed is winning its battle against inflation and that it can relax. their hawkish position. Under the heading, telecommunications services reached the top followed by consumer discretionary and health care, while energy reached the bottom followed by financials, only two shares closed lower for the week. Meanwhile, the US dollar index pulled back below 105 levels. Gold has risen to about $1,800 an ounce. WTI prices are around $80 a barrel but the 10-year yield has pulled back to 3.5%. Looking back In the filing, there were quarterly earnings results from Salesforce (CRM). There are three important economic reports on Wednesday. The November ADP jobs report showed private payrolls rose by 127,000, below the 190,000 estimate. The second estimate for the third-quarter inflation estimate was revised up to 2.9% annual growth, from 2.6% last year. is reported at the “advance” rating and above the 2.8% expected. In October pending home sales fell 4.6% month over month and were down 37% compared to last year. On Thursday, we got three more key numbers. Initial jobless claims for the week ending November 26 were 225,000, a decrease of 16,000 from the previous week and below expectations of 235,000. The PCE inflation index – the Fed’s preferred measure of inflation – showed a 5% annual increase that was in line with expectations. The ISM manufacturing report for November was 49%, below the 49.7% estimate and the lowest reading since May 2020. Although the reading was the 30th consecutive month of growth, it showed There was also a decline in the manufacturing sector after 29 consecutive months of growth. Finally, on Friday the most important non-farm payrolls report was released, showing a 263,000 increase in wages in November, above the 200,000 expected. In addition, hourly wages rose 0.6% on the month, double the 0.3% estimate. On a year-over-year basis, earnings rose 5.1%, more than the 4.6% the Street had expected. What’s ahead Earnings season is almost over. In the filing, we will hear from Costco (COST) on Thursday after the closing bell. Here are some earnings reports and economic numbers to watch for the week ahead: Monday, December 5 Before the announcement: Science Applications International (SAIC) After the announcement: GitLab (GTLB), Sumo Logic (SUMO) 10:00 am ET: Factory Orders 10:00 am ET: ISM Service Tuesday, December 6 Prior Notice: AutoZone (AZN), Signet Jewelers (SIG) After the logo: Casey’s General (CASY), Dave & Buster’s (PLAY), MongoDB (MDB), SentinelOne (S), Smith & Wesson (SWBI), Stitch Fix (SFIX), Toll Brothers (TOL), AeroVironment ( AVAV) Zuora (ZUO) Wednesday, December 7 Before notice: Academy Sports (ASO), Brown-Forman ( BF), Campbell Soup (CPB), Thor Industries (THO), Ollies Bargain (OLLI), United Natural Foods ( UNFI) After the bell: GameStop (GME), Greif (GRF), Rent the Runway (RENT), C3. ai (AI) Thursday, December 8 Before bell: Ciena Corporation (CIEN), Express (EXPR), GMS (GMS) After bell: Broadcom (AVGO), Chewy (CHWY), DocuSign (DOCU) , lululemon (LULU) 8:30 am ET: First Jobless Claim Frida y, December 9 Before the bell: Li Auto (LI) 8:30 am ET: Price Index (See here for a full list of shares in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer , you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a successful trade before buying or selling a stock in his charity stock. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing the trade announcement before making the trade. THE CLUB TERMS AND CONDITIONS REFLECT OUR TERMS AND CONDITIONS AND POLICIES, INCLUDING OUR POLICIES. NO EXPRESS OR IMPLIED WARRANTIES ARE, OR ARE MADE, IN REGARDING YOUR ACCESS TO ANY INFORMATION USED IN CONNECTION WITH THE BASED SYSTEMS CLUB. NO RESULTS OR INFORMATION IS GUARANTEED.
US Federal Reserve Chairman Jerome Powell speaks at the Brookings Institution, November 30, 2022 in Washington, DC
Drew Anger | Getty
All major stocks closed higher for the week thanks to a Friday afternoon rally that pulled the Dow Jones back into positive territory. Driving the move were several key economic reports, including the November ADP jobs and nonfarm payrolls report and the October spending report. The most important thing, perhaps, is the statement from Federal Reserve Chair Jerome Powell at The Brookings Institute, in which he indicated that the pace of interest rate hikes could slow down as soon as December – although he expected the policy to remain limited for some time; the Fed “will stay the course until the job is done,” he said.
