Indices
MARKET VIEW
Weekly changes: SPX500 +1.64%
The United States posted another string of solid data points this week. Inflation, retail sales, and weekly jobs data all posted positive surprises. The United States Consumer Price Index inflation reading jumped to 9.1 per cent, marking the sharpest increase in nine years.
A bump to U.S. Retail Sales figures also complemented the strong CPI numbers, which showed a massive 9.8 per cent monthly increase. Weekly jobless claims also fell by nearly 200,000 from the previous week to a new pandemic low. The overall market reaction saw stocks surge and bond yields fall, although the U.S. dollar failed to follow through and remained under pressure.
KEY POINTS
Technology has been the top-performing SPX500 sector, while the extensive tech-related growth stocks such as Amazon Inc, Tesla Inc and Alphabet Inc have also charged higher. Technology stocks were outpaced by shares of banks, energy companies, and other economically sensitive sectors that have surged since breakthroughs in COVID-19 vaccines.
The earnings season will continue this week which impacts the global stock market. Some of the companies that will publish their results today are IBM, Coca-Cola, United Airlines, Steel Dynamics, and Prologis. Analysts expect that most of these firms will either report strong sales or boost their forward guidance because of the overall economic recovery.
Most traders are still bullish this year with the stimulus. The Fed is committed to being dovish with the economy reopening due to vaccinations and overall corporate earnings rising.
