Last Week’s Highlights:

Last week, the broad stock market indices rose as fears of a recession faded. Federal Reserve Chairman Jerome Powell indicated he would ease on raising interest rates at a gradual pace, leading to a market rally. The S&P 500 increased 1.9% while the Dow Jones Industrial Average increased 1.6%. The tech-heavy Nasdaq bounced 2.3% and the Russell 2000, representing small-capitalization companies, rose 3.2%. Year-to-date, all major indices are in the green!

On the economic front, last week was all about Friday’s job report. Growth in Private Nonfarm Payroll jobs surged 301,000 in December versus a Wall Street estimate of 177,500. Average Hourly Earnings rose 3.2.% year-over-year surpassing estimated growth of 3.0%. The Unemployment Rate rose to 3.9% from 3.7% in November, however, the Labor Force Participate Rate rose to the highest level since September of 2017, standing at 63.1%.

Looking Ahead:

This week, several economic releases will be delayed due to the Government Shutdown. These would include, but are not limited to, New Home Sales, Construction Spending, and Light Vehicle Sales. The Trade Balance should be released on Tuesday, but could face a delay due to the fact that it is published by the Bureau of Economic Analysis. Inflation data should be released on Friday. Wall Street is expecting growth of inflation to be about 2.2% year-over-year, excluding food and energy. Next week, fourth quarter earnings season will kick off, mostly lead by the big banks.

The Tufton Capital Team thanks you for your continued support!