The Markets (as of market close November 18, 2022)
Stocks fell last week following warnings from several Federal Reserve officials that more policy tightening was to come. Each of the major benchmark indexes closed the week lower after enjoying solid gains the previous week. The Russell 2000 and the Nasdaq fell the furthest, followed by the S&P 500, the Global Dow, and the Dow. Yields on 10-year Treasuries ended last week right where they began. Gold prices couldn’t maintain an early-week surge, ultimately closing lower by the close of trading last Friday. The dollar gained about 0.05%. An abundant supply and waning demand sent crude oil prices lower for the second week in a row.
Eye on the Week Ahead
There isn’t much in terms of economic data scheduled for Thanksgiving week. The October figures on durable goods orders are available. New orders for durable goods increased 0.4% in September, driven higher by new orders for transportation equipment. Excluding transportation, new orders for durable goods dipped 0.5% in September. The latest data on new home sales from the Census Bureau is out this week. Sales of new single-family homes fell nearly 11.0% in September and were down 17.6% since September 2021.
Data sources: Economic: Based on data from U.S. Bureau of Labor Statistics (unemployment, inflation); U.S. Department of Commerce (GDP, corporate profits, retail sales, housing); S&P/Case-Shiller 20-City Composite Index (home prices); Institute for Supply Management (manufacturing/services). Performance: Based on data reported in WSJ Market Data Center (indexes); U.S. Treasury (Treasury yields); U.S. Energy Information Administration/Bloomberg.com Market Data (oil spot price, WTI, Cushing, OK); www.goldprice.org (spot gold/silver); Oanda/FX Street (currency exchange rates). News items are based on reports from multiple commonly available international news sources (i.e., wire services) and are independently verified when necessary with secondary sources such as government agencies, corporate press releases, or trade organizations. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Forecasts are based on current conditions, subject to change, and may not come to pass. U.S. Treasury securities are guaranteed by the federal government as to the timely payment of principal and interest. The principal value of Treasury securities and other bonds fluctuates with market conditions. Bonds are subject to inflation, interest-rate, and credit risks. As interest rates rise, bond prices typically fall. A bond sold or redeemed prior to maturity may be subject to loss. Past performance is no guarantee of future results. All investing involves risk, including the potential loss of principal, and there can be no guarantee that any investing strategy will be successful.
The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 largest, publicly traded companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2,000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. The U.S. Dollar Index is a geometrically weighted index of the value of the U.S. dollar relative to six foreign currencies. Market indexes listed are unmanaged and are not available for direct investment.
