Making Sense: In Brief
The week ahead for markets and the economy
Phil: Last week, the Fed held rates steady as expected and signaled the federal funds rate is likely to remain constant for some time as they continue in wait-and-see mode on upcoming inflation data.
The market also priced Friday's jobs report, which showed decent job gains and most importantly, lower-than-expected wage inflation. The S&P 500 has been more volatile over the last few weeks as markets have bounced between fairly strong earnings results and mixed economic data.
Turning to the week ahead, the economic data front will be quieter this week after last week's slew of activity.
The University of Michigan's consumer sentiment index will be released on Friday. Sentiment has improved in recent months, reflecting higher equity prices and a stronger economy, but it is still at a low level compared to before the pandemic.
The survey's gauge of consumer inflation expectations will also be on watch in coming months as markets are attuned to as much information on inflation as possible.
On Thursday, markets will watch the weekly jobless claims figure for a high-frequency signal on the health of the labor market. So far this year, jobless claims have remained at low levels.
Finally, earnings season marches on, with dozens of S&P 500 companies releasing results this week. So far, nearly 80% of companies have outperformed consensus expectations.
So items to watch this week. One, consumer sentiment. Two, jobless claims. And three, earnings season.
Making Sense In Brief Outro Slide
Brent Ciliano
CFA | SVP, Chief Investment Officer
Capital Management Group | First Citizens Bank
8510 Colonnade Center Drive | Raleigh, NC 27615
Brent.Ciliano@FirstCitizens.com | 919-716-2650
Phillip Neuhart SVP, Director of Market and Economic Research
Capital Management Group | First Citizens Bank
8510 Colonnade Center Drive | Raleigh, NC 27615
Phillip.Neuhart@FirstCitizens.com | 919-716-2403
Blake Taylor | Market & Economic Research Analyst
Capital Management Group | First Citizens Bank
8510 Colonnade Center Drive | Raleigh, NC 27615
Blake.Taylor@FirstCitizens.com
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