“Fed Chairman Powell spoke Hawkish Tuesday so he can speak Dovish later”–Paul Ebeling
Tuesday, US lawmakers heard the heads of the Fed and Treasury discuss inflation and the possible impact of the new Omicron COVID-19 variant on what both officials view as a strong economy.
Dow -652.22 at 34483.72, Nasdaq -245.14 at 15537.71, S&P -88.27 at 4567.00
The stock market fell Tuesday, as risk sentiment was pressured by commentary from Fed Chairman Powell about inflation and monetary policy.
The S&P 500 (-1.9%), Dow Jones Industrial Average (-1.9%), and Russell 2000 (-1.9%) each declined 1.9% while the Nasdaq Composite lost 1.6%.
All 11 S&P 500 sectors closed lower with losses ranging from 1.0% (information technology) to 3.0% (communication services).
- S&P 500 +21.6% YTD
- NAS Comp +20.6% YTD
- DJIA +12.7% YTD
- Russell 2000 +11.4% YTD
- The Conference Board’s Consumer Confidence Index dropped to 109.5 in November from a downwardly revised 111.6 in October. That is the lowest reading since February 2021.
- The Key takeaway from the report is that concerns about rising prices and the Delta variant were the drivers of the decline in confidence.
- The Chicago PMI dropped to 61.8 in November from 68.4 in October.
- The FHFA Housing Price Index increased 0.9% m/m in September following an unrevised 1.0% increase in August. The S&P Case-Shiller Home Price Index increased 19.1% yr/yr in September following a revised 19.6% (from 19.7%) increase in August.
Looking Ahead: Wednesday, investors will receive the ISM Manufacturing Index for November, Construction Spending for October, the ADP Employment Change report for November, the Fed’s Beige Book for December, the weekly MBA Mortgage Applications Index, and the final IHS Markit Manufacturing PMI for November.
Pro-choice and anti-abortion activists will hold dueling rallies in front of the US Supreme Court on Wednesday, as the justices hear arguments in a case that could overturn the 1973 Roe v. Wade ruling that legalized abortion nationwide.
Have a prosperous day, Keep the Faith!