The Last Slice for Friday, December 10, 2021

(MarketWatch) — U.S. stock benchmarks finished higher Friday to book gains for the week, with the S&P 500 index closing at a fresh peak, as investors digested data that showed consumer prices in November rose by the most in nearly four decades ahead of the Federal Reserve’s monetary policy meeting next week.

  • The Dow advanced +216.30 or +0.60%
  • The S&P 500 climbed +44.57 or +0.95%
  • The Nasdaq rose +113.23 or +0.73%

For the week, the Dow gained 4%, the S&P 500 climbed 3.8% and the Nasdaq advanced 3.6%. The Dow saw its biggest weekly percentage gain since March, snapping a four-week losing streak, according to Dow Jones Market Data. The S&P 500 and Nasdaq each had their largest weekly percentage gain since February.

U.S. stocks ended higher Friday as investors interpreted the latest consumer inflation data as not as bad as the worst-case scenario for Wall Street. 

Data released ahead of the stock market opening on Wall Street showed November consumer price inflation rose 6.8% annually, slightly higher than expectations for a rise of 6.7% by a poll of economists by The Wall Street Journal. It marks the fastest annual inflation rate since 1982.

President Joe Biden’s statement Thursday that Friday’s report on consumer prices wouldn’t reflect a drop in energy prices since the data was collected helped build expectations for a stronger inflation reading, according to Janasiewicz. Some investors may have taken Biden’s remarks as an effort to “soften the blow” of a potentially higher-than-anticipated print from the consumer price index, he said. 

The cost of living rose 0.8% on the month, just ahead of expectations for a 0.7% gain. Core inflation, which strips out food and energy costs, jumped 0.5% in November as expected, while core inflation year-over-year in November rose 4.9%.

Consumer staples and information technology saw the strongest gains Friday among the S&P 500 index’s sectors, each closing around 2% higher, according to FactSet data.

Friday’s consumer inflation report sets the stage for the Federal Reserve’s policy meeting next week, after Fed Chair Jerome Powell recently telegraphed the central bank’s plans to consider tapering its monthly bond purchases at a faster pace.

The Fed will meet Dec. 14-15.

Meanwhile, consumer sentiment measured by the University of Michigan’s gauge rebounded in December to 70.4 from a final November reading of 67.4. Economists polled by The Wall Street Journal expected an index reading of 68.0. 

Full Loaf Hot LinkOriginal Article By: Christine Idzelis

*Click on the “Full Loaf” icon to read the full article! After you read the article come back and tell us your thoughts.

2 thoughts on “The Last Slice for Friday, December 10, 2021”

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Today's Dough