Friends
The weight of continued weakness in economic data has moved interest rates lower this week and finally took a toll on stocks today. While the corporate earnings picture remains relatively good, though certainly not perfect, the economy is definitely showing signs of slowdown. We have mentioned that given all the prognostications of recession, the facts may show that we are already in a recessionary environment.
As for stocks, by the close the Dow Jones Industrial Average was down 137 points to finish the day at 31,899. The S&P 500 was down 37 points to close at 3,961. The Nasdaq Composite Index was down 225 points to close at 11,834. Gold was up $8 to trade at $1,722 per ounce, while oil was down $1.72 to trade at $94.63 per barrel WTI.
Next week is going to be a huge one for the markets. Given hot inflation numbers and weak economic data the Fed will have a lot to chew on at next week’s FOMC meeting. It is expected that they will raise the Fed Funds rate 75 basis points, but what comes after that is certainly debatable. On the earnings front next week will be the most important of the earnings season. We will hear from Apple, Google, 3M, Kimberly Clark, McDonald’s, Microsoft, Coca-Cola, General Motors, Boeing, Kraft Heinz, Amazon, Southwest Airlines, Intel, Abbvie, Procter & Gamble, Chevron, and Exxon Mobil just to name a few. Buckle up, it is going to be an interesting week ahead.
Have a great weekend everyone.
