After a lower-than-expected rise in consumer inflation spurred hope the Fed may scale down its monetary tightening effort, U.S. markets rose on Friday to cap off a solid week for stocks. The S&P 500 increased by almost 6%, the Nasdaq by more than 8%, and the Dow increased by 4.2% for the week. The excitement was heightened by loosening COVID-19 regulations in China, which boosted oil futures and the stock prices of fossil fuel businesses in anticipation of rising demand. However, once FTX filed bankruptcy and the prices of the majority of significant currencies dropped, the week only grew worse for the cryptocurrency markets.
In what could be the final significant week of current corporate earnings season as it winds down, big-box retailers like Walmart, Target, Macy’s, Home Depot, and Lowe’s will report profits the next week. The U.S. Census Bureau will disclose retail sales information for the month of October on Wednesday, giving important new information on consumer spending as we approach the holiday shopping season. Along with the NAHB’s Housing Market Index, new housing market statistics including October housing starts, building permits, and existing home sales will also be made public. With industrial production figures for October and the Philadelphia Fed Manufacturing Index for November, we can anticipate updates from the American manufacturing sector.
The U.S. Census Bureau will release retail sales data for October on Wednesday, providing insight into whether consumer spending on goods and services continued in October. After readings of unchanged in September and 0.8% in October, retail sales growth most likely picked up. This year, consumer spending has significantly slowed down as a result of price increases and interest rate increases by the Federal Reserve. Although Adobe Analytics anticipates shops to start their holiday promotions earlier this year and consumers will try to beat inflation by buying earlier, it is possible that consumers getting a head start on their holiday shopping helped to raise spending last month.
Beginning with the release of the NAHB’s Housing Market Index on Wednesday, more information on the American housing market will be accessible the following week. The U.S. Census Bureau will release a report on home starts and building permits for October on Thursday. According to projections, housing starts dropped to 1.42 million last month from 1.44 million in September and a recent high of about 1.81 million in April.
The National Association of Realtors (NAR) will publish October existing home sales data on Friday. According to projections, existing home sales decreased last month from 4.71 million in September to 4.36 million. From a recent peak of 6.49 million in January, this would mark the ninth month in a row of falls. Mortgage rate increases have significantly impacted homebuyer demand; according to the Mortgage Bankers Association, the average rate on a 30-year fixed-rate mortgage has recently risen beyond 7%.
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