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US Stock Markets Ended Dec. 10, 2021
Equities moved higher after risks that the Omicron COVID variant would slow down economic activity wanned. The S&P 500 index returned 3.84% last week, closing Friday at an all-time high. Technology, materials, and energy names outpaced other sectors because of heightened inflation expectations. YOY growth in CPI hit 6.8%, the highest inflation rate in 39 years, cementing the hawkish tone from the Federal Reserve Chairman. The reopen trade ripped higher after a soft few weeks as Omicron risks subsided. Cruise lines Norwegian Cruise Line Holdings and Royal Caribbean Cruises were both up over 13% last week; airline names United Airlines and American Airlines Group were both up over 8%; hotel names Marriott International and Hyatt Hotels were both up over 7%; travel booking names Expedia and Booking.com were up over 5% and ticketing/venue company Live Nation Entertainment rallied over 10% as shutdown risks were lower. There were several earnings announcements last week as well. Oracle announced earnings and revenue that beat expectations as the stock rallied 16.31% last week. The technology infrastructure company announced service and license support revenue for their cloud offerings which topped expectations, which rallied their stock to close Friday at an all-time high. Technology component producer Broadcom Inc. also closed Friday at an all time high, rallying 13.18% last week after announcing earnings and revenue above market expectations. The company said their sales are booked out almost the whole of 2022 and the CEO warned that some areas seem excessively hot. Despite all-time highs in equities, our outlook remains positive. For the buy and hold investor, equities have always been a great inflation hedge and corporate earnings along with the U.S. consumer remain strong.
Monday, December 13, 2021 @ 8:48 AM
These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.