Last week, the S&P 500 registered a 2.31% gain, marking a three-week upward trend in stocks. Interest rates fell in response to moderate inflation data and decreased consumer spending, signaling a promising yet cautious economic scenario.
In its recent earnings report, Walmart beat expectations and shared insightful observations on inflation and consumer behavior during its earnings call. The company noted deflation in most grocery categories, excluding beef, dry, and canned goods, and anticipates deflation in general merchandise. Walmart’s insights are particularly significant given its global presence in both physical and online retail. Their experiences with deflation support last week’s Consumer Price Index (CPI) and Producer Price Index (PPI) reports and suggest potentially lower future prices for consumers. However, Walmart’s observation of reduced consumer demand towards the end of Q3 suggests pockets of tightening in consumer spending.
The upcoming week will be shorter due to the stock market’s closure on Thanksgiving Day. On Tuesday, the Federal Open Market Committee (FOMC) is set to release minutes from their November meeting, offering deeper insights into the committee members’ viewpoints on policy actions and plans. According to the CME FedWatch Tool, there is an overwhelming 99.8% probability that the Federal Reserve will maintain its current interest rates at the December 13th meeting this year. Cheers!
Have a Happy Thanksgiving, and thank you for reading!
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