Market Drama

Welcome to this week’s Market Drama!

• The S&P 500 was up 1.6% last week. Currently it is up 9% for the year. 
• Cyclical stocks are up to 14% YTD. 
• January job reports came in much better than expected, adding 517,000 jobs. 
  • The expectation was for 185,000.
• Unemployment rate is now at 3.4%.
• The Federal Reserve raised interest rates 25 basis points, which was expected. 

When it comes to this week: 

• Earnings reports for Disney, Chipotle, Dupont, Pepsi and Company, and others, paint a picture of earnings not doing well. 
• We’ll probably see year-over-year drop of 5%, maybe even 6% year-over-year earnings growth. 
• On Tuesday, the Federal Reserve Chairman, Powell will have remarks before the Economic Club of Washington regarding disinflation and comments about their forecast for the economy this year. 

Stay tuned for next week. Take care.

– Andres