John Hancock: Weekly Market Recap Week Ended January 13th
Inflation moderation
U.S. prices rose at a 6.5% annual rate in December as measured by the Consumer Price Index, marking the smallest year-over-year increase since October 2021. Excluding food and energy costs, core inflation rose by 0.3% relative to the previous month, in line with economists’ average forecast.
Low expectations
A handful of major U.S. banks kicked off earnings season with mixed results. As of Friday, analysts were forecasting that fourth-quarter earnings for companies in the S&P 500 fell by an average of 3.9%, which would mark the first year-over-year decline since the third quarter of 2020, according to FactSet.
Calming trend
An index that measures investors’ expectations of short-term U.S. stock market volatility fell nearly 13%, marking the second weekly decline in a row for the Cboe Volatility Index. The index, also known as the VIX, is down about 45% from a recent peak in mid-October
Sales check ahead
A report scheduled to be released on Wednesday will provide an update on U.S. retail sales activity during the holiday shopping season. The data on December sales follows a November report that recorded a 0.6% sales decrease—the biggest decline in 11 months.
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