A rise in values last Friday wasn’t enough to prevent stocks from closing generally lower last week. To start the new year, the major benchmark stock indexes declined, with the exception of the Russell 2000. Among the market sectors, only energy, utilities, real estate, and health care advanced, while consumer discretionary fell the furthest. Ten-year Treasury yields ended the week where they began. Crude oil prices reached a two-month high, driven by cold weather in Europe and the U.S. coupled with growing optimism over increasing Chinese demand. The dollar remained near its highest levels in two years as investors banked on continuing U.S. economic resilience and fewer interest rate cuts. Gold prices rose following a dip in prices the previous week.
Last Week’s Economic News
- According to the survey of purchasing managers by S&P Global, the manufacturing sector ended 2024 trending lower.
- The national average retail price for regular gasoline was $3.006 per gallon on December 30.
- For the week ended December 28, there were 211,000 new claims for unemployment insurance.
Eye on the Week Ahead
Heading into the new year, all eyes will be on the December employment figures, released at the end of this week. Employment rose by 227,000 in November, although the unemployment rate ticked up 0.1 percentage point to 4.2%. The Federal Reserve pays particular attention to the jobs report as it relates to the Fed’s primary policy goals of full employment and 2.0% inflation. A favorable jobs report supports moderation in the timing of further interest rate reductions.
Have a nice week!
Sincerely,
Robert G. Carpenter