Wall Street fell more than 1% in trading after ending the week lower, even as the S&P 500 hit a new closing high on Thursday and the Nasdaq Composite hit an intraday high on Friday. . The Dow Jones Industrial Average fell 0.93%, its worst week since October. The S&P 500 and tech-heavy Nasdaq fell 0.26% and 1.17%, respectively. The earnings season continued to be generally strong. According to FactSet, 99% of S&P 500 companies report earnings. 73% of companies reported earnings surprises and 64% reported better-than-expected earnings results. Inside the club, we heard from Foot Locker on Wednesday and from Costco and Broadcom on Thursday. Foot Locker was disappointed, but the size of the corresponding selloff seemed excessive. Costco and Broadcom provided high-quality but incomplete reports, opening the door for profit takers to take action after both stocks had strong price increases. This week's sharp decline in economic data was driven by his February nonfarm payrolls report on Friday. Employment statistics certainly served to support the “soft landing” theory. That's because higher-than-expected job growth was partially offset by higher-than-expected unemployment and slower annual wage inflation. This is the right combination for investors looking for downward pressure on inflation without a spike in unemployment that threatens economic growth. In the days leading up to the main event, we also received private sector employment numbers from payroll processing company ADP and his ISM service report for February. Both were slightly below expectations. Meanwhile, the Commerce Department's January factory orders report released Tuesday showed a bigger-than-expected decline. The coming week will be quiet on the club's revenue front, but some important macroeconomic updates will take center stage. The focus will be on Tuesday's February consumer price index report. Economists expect an annual increase of 3.1% at the headline level and 3.7% at the core level, which removes volatile food and energy prices, according to FactSet. The Fed's preferred measure of inflation is the Core Personal Consumption Expenditure Index, but the second best is the CPI. That's certainly factored into Wall Street's thinking about the Fed's next move on interest rates. Apart from the core inflation figures, a key focus in the report is the shelter index. The persistence of housing inflation is a real problem for the Fed because housing inflation is such a large and unavoidable cost to American consumers. Agricultural product price index for February is scheduled to be released on Thursday. This report is less important than the CPI report because the Fed's main concern is what U.S. consumers pay, not producers. Still, this report is important because it may foreshadow trends in his CPI reports going forward. Remember that the company has two options regarding the increase in input costs. Either absorb it or pass it on to your customers. Therefore, a larger-than-expected rise in PPI could signal future price increases as companies seek to pass on higher costs and protect profits. Higher prices for consumers is exactly what we don't want to see. Because it requires the Fed to maintain a more aggressive stance. At the same time, as an investor, I don't like the idea of companies absorbing costs that put pressure on profits. This is a give-and-take situation, but for now the ideal outcome for both consumers and producers is to reduce inflation. Economists expect the PPI to rise 0.3% in February from the previous month, according to FactSet. Core PPI, which also excludes food and energy prices, is expected to rise 0.2% month-on-month. Finally, on a 12-month basis, his PPI is projected to rise 1%, according to FactSet. The retail sales report for February is also scheduled to be released on Thursday. While this is not a direct reading of inflation, it does provide insight into the path that a large portion of the gross domestic product, and therefore the U.S. economy, is on. Consumer spending accounts for roughly two-thirds of U.S. GDP, so if a soft landing, or perhaps a “no-landing” scenario in the Fed's inflation fight were to actually occur, consumer spending would be It is extremely important to hold out at best. The economy slows down. Understanding this helps explain why the Fed is right to be so cautious about changing monetary policy. It's an amazing balancing act performed in real time. Federal Reserve Chairman Jerome Powell may have been late to raising rates, but luckily he's had something of a masterclass in monetary policy since the U.S. central bank began raising rates two years ago this month. did it. The last big report to watch is Friday, when the February industrial production and capacity utilization report will be released. This report provides insight into the current state of the manufacturing industry and indirectly reflects consumer and business demand. The more end market demand increases, the more production and utilization up the supply chain should increase. Monday, March 11 Before the bell: Ballard Power Systems (BLDP), Fortrea Holdings (FTRE) After the bell: Oracle (ORCL), Asana (ASAN), Casey's General Stores (CASY), Vail Resorts (MTN), Ocular Therapeutix ( OCUL ), Mission Produce (AVO) Tuesday, March 12, 8:30 a.m. ET: Consumer Price Index Before the Bell: Archer Daniels Midland (ADM), On Holding (ONON), Kohl's Corporation ( KSS), Workhorse Group (WKHS) ), Kanzhun Limited (BZ), Hagerty (HGTY), International Game Technology (IGT), Manchester United (MANU), Blade Air Mobility (BLDE) After the Bell: Clover Health (CLOV) , Beauty Health Company (SKIN), Allbirds (BIRD), Funware (PHUN), Energy Vault Holdings (NRGV), PHX Minerals (PHX), Guild Holdings Company (GHLD), 360 Finance (QFIN), Heron Therapeutics (HRTX), Purple Innovation (PRPL) Wednesday, March 13 Before the Bell: Dollar Tree (DLTR), ZIM Integrated Shipping Services (ZIM), Arcos Dorados Holdings (ARCO), Petco Health and Wellness Company (WOOF), Village Farms International (VFF), Williams-Sonoma (WSM) After the Bell: UiPath (PATH), SentinelOne (S), ESS Tech (GWH), Lennar (LEN), Vroom (VRM) Thursday, March 14th at 8:30 a.m. Eastern Standard Time): Producer Price Index 8:30 a.m. ET: First Unemployment Insurance Claims 10:00 a.m. ET: Retail Sales Before the Bell: Dollar General (DG), DICK'S Sporting, Inc. (DKS) , Futu Holdings (FUTU), Canadian Solar (CSIQ), Build-A-Bear Workshop (BBW), Autolus Therapeutics ( AUTL), G-III Apparel Group (GIII), Solo Brands (DTC), GoHealth (GOCO), Weibo Corporation (WB) Afterbell: Adobe (ADBE), Blink Charging (BLNK), ULTA Beauty (ULTA), PagerDuty (PD), Smartsheet (SMAR) S&P 500 hits new high at Thursday's close, Nasdaq Despite hitting a new intraday high on Friday, March 15th, all major averages ended the week lower. 3:00 a.m. ET: Industrial Production and Capacity Utilization Before the Bell: Jabil Inc. (JBL), Embraer (ERJ) (Jim Cramer's Charitable Trust long FL, COST, AVGO. For a complete list of stocks, see here ) As a subscriber to Jim Cramer's CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in a charitable trust's portfolio. 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A grocery store in Washington, DC, USA on February 14, 2024.
Mostafa Basim | Anadolu | Getty Images
Wall Street is S&P500 Thursday's closing price hit a new all-time high, Nasdaq Composite It set an intraday record on Friday, but fell more than 1% during the session.of Dow Jones Industrial Average The stock fell 0.93%, marking its worst week since October. The S&P 500 and the tech-heavy Nasdaq fell 0.26% and 1.17%, respectively.
