Looking back on the week, the market rallied after the Fed signaled that three interest rate cuts will still prove appropriate by the end of the year, providing relief following two months of hotter inflation readings. Fed policymakers kept rates unchanged as expected. Housing starts for February also came in better than expected, and the hope is to see that strength continue in the coming months to help keep housing inflation down. Economic data released this week provides insight into the real U.S. economy, particularly how small- and medium-sized businesses are faring. Friday’s key macroeconomic update will include personal income and spending data, as well as the Fed’s favorite inflation gauge.
On Thursday, the government released its final reading on fourth-quarter 2023 gross domestic product, providing insight into the economy’s performance at the end of last year. The latest reading on pending home sales was also released, following reports on new home sales and home price data earlier in the week. Quarterly earnings reports from companies like Carnival, Cintas, and Paychex will shed light on consumer spending, business services, and the state of the labor market. These reports are crucial to understanding the overall health of the economy and provide important indicators for future market performance.
Upcoming economic data includes new home sales, durable goods orders, and S&P/Case-Shiller home prices on Monday and Tuesday. Quarterly earnings reports from companies like Carnival, Cintas, and Paychex are expected on Wednesday. Additional economic data on jobless claims, GDP, and pending home sales will be released on Thursday. On Friday, the PCE price index, the Fed’s favorite inflation gauge, will be published. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim makes a trade, ensuring transparency and allowing for a 45-minute waiting period before executing trades. The Investing Club information is subject to terms and conditions, privacy policy, and disclaimer, with no guaranteed outcome or profit.
In conclusion, despite stumbling on Friday, Wall Street managed to post strong weekly gains following a four-session winning streak fueled by a favorable update from the Federal Reserve. The market breathed a sigh of relief after the Fed signaled that interest rate cuts will likely continue this year. Economic data released throughout the week provided valuable insight into the real U.S. economy, including housing starts, GDP, and pending home sales. Quarterly earnings reports from companies like Carnival, Cintas, and Paychex will give further insights into consumer spending, business services, and the labor market. Looking ahead, upcoming economic data and earnings reports will continue to shape market performance and provide crucial indicators for investors and analysts.
