On Wall Street closed higher last week as traders considered the executive orders issued by the new administration. Therefore, all the major benchmark stock indexes ended the week higher, led by the Global Dow and the Dow. Communication services, health care, and industrials outperformed among the market sectors, while energy lagged. Ten-year Treasury yields ticked higher. Crude oil prices dropped nearly 4.5%, the largest weekly decline since November. The dollar index extended its decline to a one-month low. Gold reached its highest level since October.
Last Week’s Economic News
- Sales of existing homes rose in December, the strongest pace since February. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.96% as of January 23. That’s down from 7.04% one week ago but up from 6.69% one year ago.
- The national average retail price for regular gasoline was $3.109 per gallon on January 20.
- For the week ended January 18, there were 223,000 new claims for unemployment insurance.
Eye on the Week Ahead
The Federal Open Market Committee meets for the first time this year, when the Committee is expected to keep the federal funds rate range at its current 4.25%-4.50%. Investors will be paying particular attention to any indications from the Fed of future interest rate decreases. An inflation indicator favored by the Fed is the personal consumption expenditures price index, which is out this week for December. Also available is the first iteration of gross domestic product for the fourth quarter of 2024.
Have a nice week!
Sincerely,
Robert G. Carpenter