John Hancock: Weekly Market Recap Week Ended March 1

Earnings scorecard

Companies in the S&P 500 posted an average earnings gain of 4.0% over the same quarter a year earlier, according to FactSet data from the recently concluded fourth-quarter earnings season. That result marked the second consecutive year-over-year earnings increase following the third quarter’s 4.7% rise. Communication services posted a 45.0% gain, marking that sector’s second consecutive quarter as the earnings leader.

U.S. inflation moderation

The U.S. Federal Reserve’s preferred gauge for tracking inflation showed that consumer prices continued to rise at a slower pace. The Personal Consumption Expenditures Price Index posted a 2.8% annual rate in January, excluding volatile food and energy prices. That result matched most economists’ expectations and marked the slowest increase since March 2021.

Eurozone inflation

Inflation slipped in the 20 countries that use the euro as their currency, as the eurozone’s annual inflation rate fell to 2.6% in February from 2.8% the previous month. Excluding the volatile food and energy categories, core inflation fell to 3.1% from 3.3%.

Jobs ahead

A monthly labor market report due out on Friday will show whether the recent trend of better-than-expected jobs numbers extended into February. In January, the economy generated 353,000 new jobs—about double the number that most economists had been expecting. The unemployment rate stayed unchanged at 3.7%.

Source: https://wmr.jhinvestments.com/