Stocks Declined Sharply As Investors Await Key Economic And Earnings Reports
by JJ Kinahan
Forbes
Stocks fell sharply on Friday and all the major indices ended the week lower. The S&P 500 lost 1.5% for the week. The Nasdaq Composite dropped 2.5%. Small caps were hit hardest, dropping 2.5%, while the Dow Jones Industrial Average fell 2.5%. While last week lacked any significant economic data or earnings news, this week has several items of note.
On the economic calendar, tomorrow, the Conference Board will release its latest read on Consumer Confidence. The Durable Goods report for January comes out Thursday. However, the most important report of the week and the Federal Reserve’s preferred gauge on inflation, Personal Consumption Expenditures , is due out Friday morning. Heading into the week, there is a better than 97% chance the Fed will leave interest rates unchanged when they meet in March, according to the CME FedWatch Tool. As of now, the earliest point at which we may see a rate cut is not until June. I’ll be watching to see if these numbers change at all by the time the week ends.