Economic data floods the market this week as earnings season kicks off. So far we’ve seen mixed data, resulting in a negative market response. Inflation fears are growing after a strong rally with repeated record highs. With the possibility of interest rates rising in the near term, I’d stay away from overbought large-cap tech. I’ve identified two stocks that aren’t as sensitive to rate fluctuations and are experiencing pullbacks — and more in today’s stock market recap.
In the stock market recap, global stocks are mixed as investors weigh new inflation data and positive corporate earnings.
Jobless claims this past week hit a new pandemic low. Continuing claims also fell by 126,000 as the jobs market continues to improve. The New York Federal Reserve released its Empire State manufacturing survey with results being much better than expected.
On the other hand, the Philadelphia Fed’s manufacturing business outlook reading of 21.9 was low compared to the 28.1 expected. Markets are responding negatively to this data.
Fed Chair Jerome Powell reaffirmed the temporary inflation stance despite hot data this week. The bond market is hovering around its 200-day moving average and hasn’t yet been affected by the latest news indicating our economy is running hot. I expect it could hover around current levels but will ultimately fall due to the certainty of interest rates rising — which could be by the end of the summer.
The retail sales and consumer sentiment reports due Friday will add to our economic data collection this week, giving us more insight into how our gross domestic product looks.
Alkermes Plc (Nasdaq: ALKS) is a biotechnology company. ALKS is hitting its 50-day MA after making a swing high. With a market cap of only $3.8 billion, this stock will look to bounce back higher.
The second stock on my radar is a technology infrastructure company. It builds and operates data centers. Big companies will need more data centers as technology continues to improve and the use of data continues to grow.
In today’s video, I’ll show you where bonds are heading… which index is set to fall… the biggest threat to the markets this week… an update on momentum levels in the Nasdaq… and two hot stocks that are pulling back and ready to bounce.
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Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.