The Nasdaq Composite rose on Friday to its fifth straight record close, as new data last week showed inflation continuing to slow and Treasury yields falling. During the week: The tech-heavy Nasdaq rose 3.2%, while the S&P 500 rose 1.6% and the Dow Jones Industrial Average fell 0.5%. Economic updates helped drive gains. First, the May Consumer Price Index (CPI) on Wednesday came in weaker than expected, remaining flat from April's reading. Economists had expected a 0.1% increase. A day later, the Producer Price Index fell 0.2% during the month versus expectations for a 0.1% increase. (The Consumer Price Index measures the prices of a basket of goods and services across the U.S. economy, while the Producer Price Index is a measure of the prices that producers receive for their goods and services in the market.) Investors welcomed both issues. They showed that the Fed's two-year plan to raise interest rates and keep them at high levels to reduce inflation is still working. The hope is that as prices fall, the central bank will start cutting interest rates again. Federal Reserve Chairman Jerome Powell pointed to this progress to reporters following the Federal Open Market Committee's decision on Wednesday to leave interest rates unchanged. However, he said more data was needed before a cut could be made. He has indicated that a reduction is likely to be in place before the end of the year. The market seems to disagree with that. As of Friday, the CME FedWatch tool was placing the largest odds on two downgrades this year — one in September and one in December. Among the S&P 500 sectors, information technology was the biggest winner this week, advancing nearly 6% on the back of big moves from club names Apple and Broadcom as well as Oracle and Adobe. An 8.5% rise in heavyweight Nvidia's portfolio after its 10-for-1 stock split on Monday also helped. On the other hand, the energy sector was the biggest loser, followed by the financial sector and industry. Inside the club we heard this week from Broadcom, which reported strong quarterly results and announced a 10-for-1 stock split. None of the portfolio companies reported earnings next week. In the first quarter, technology was the biggest winner, with 89% of the sector's companies reporting profits that exceeded expectations. It's followed by health care, at 88%, and consumer staples, at 84%, according to FactSet. On the revenue side, real estate ranked first, with 74% of companies reporting positive revenue surprises, followed by technology at 71% and healthcare at 69%. Here's what's on our radar for next week – noting that US markets are closed on Wednesday in observance of Juneteenth. Retail. May results will be released on Tuesday and should shed some light on the resilient consumer. Where do people spend? What are they holding back? Investors are looking for a total monthly gain of 0.3%, according to FactSet. Industrial production and capacity utilization. This will show how well manufacturing, mining, and electric and gas utilities are performing. According to FactSet, economists expect industrial production to rise 0.3% month-on-month with capacity utilization at 78.6%, up slightly from the previous month. Living. May housing starts and existing home sales dominate the weekend. The cost of shelter has been a major source of upward pressure on inflation, so any signs of relief would be very welcome by Wall Street. Profits. Although no portfolio companies are reporting, two companies to watch are Lennar on Monday and Darden Restaurants on Thursday. Lennar is one of the largest homebuilders in the US, so we can use this release to indirectly provide further evidence on the future path of inflation. Ideally, we want to see more supply on the way because that will be key to easing price inflation – which is key to Fed rate cuts later this year. Darden Restaurants, the operator behind Olive Garden, Longhorn Steakhouse, Yard House and others, will give us another perspective on consumer spending. Monday, June 17 After the Bell: Lennar (LEN), La-Z-Boy (LZB) Tuesday, June 18, 8:30 a.m. ET: Retail Sales 9:15 a.m. ET: Industrial Production and Capacity Utilization Before the Bell: Americas CarMart ( CRMT) After the Bell: KB Home (KBH) Wednesday, June 19 US stock markets are closed for Juneteenth. Thursday, June 20 at 8:30 a.m. ET: Initial unemployment claims 8:30 a.m. ET: Housing starts before the bell: Accenture (ACN), Kroger (KR), Darden Restaurants (DRI), Jabil (JBL) After the bell: Smith & Wesson (SWBI) Friday, June 21 at 10:00 AM ET: Existing Home Sales Before the Bell: CarMax (KMX), FactSet (FDS) (See here for a complete list of stocks in Jim Cramer's Charitable Trust.) If you By subscribing to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim takes a trade. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charitable fund's portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. The above Investment Club information is subject to our Terms and Conditions and Privacy Policy, as well as our Disclaimer. No obligation or fiduciary duty exists or is created by your receipt of any information provided in connection with the Investment Club. No specific results or profits are guaranteed.
A trader works, as the screen shows Federal Reserve Chairman Jerome Powell's press conference after the federal funds rate announcement, on the floor of the New York Stock Exchange (NYSE) in New York City, US, January 31, 2024.
Brendan McDiarmid | Reuters
the Nasdaq Composite It rose on Friday to its fifth straight record close, as new data last week showed inflation continuing to slow and Treasury yields falling.
