Exchange-traded fund inflows have already topped monthly records in 2024, and managers think inflows could see an impact from the money market fund boom before year-end.
“With that $6 trillion plus parked in money market funds, I do think that is really the biggest wild card for the remainder of the year,” Nate Geraci, president of The ETF Store, told CNBC’s “ETF Edge” this week. “Whether it be flows into REIT ETFs or just the broader ETF market, that’s going to be a real potential catalyst here to watch.”
Total assets in money market funds set a new high of $6.24 trillion this past week, according to the Investment Company Institute. Assets have hit peak levels this year as investors wait for a Federal Reserve rate cut.
“If that yield comes down, the return on money market funds should come down as well,” said State Street Global Advisors’ Matt Bartolini in the same interview. “So as rates fall, we should expect to see some of that capital that has been on the sidelines in cash when cash was sort of cool again, start to go back into the marketplace.”
Bartolini, the firm’s head of SPDR Americas Research, sees that money moving into stocks, other higher-yielding areas of the fixed income marketplace and parts of the ETF market.
“I think one of the areas that I think is probably going to pick up a little bit more is around gold ETFs,” Bartolini added. “They’ve had about 2.2 billion of inflows the last three months, really strong close last year. So I think the future is still bright for the overall industry.”
Meanwhile, Geraci expects large, megacap ETFs to benefit. He also thinks the transition could be promising for ETF inflow levels as they approach 2021 records of $909 billion.
“Assuming stocks don’t experience a massive pullback, I think investors will continue to allocate here, and ETF inflows can break that record,” he said.
According to NewEdge Wealth’s Ben Emons, the final month of the year typically creates a bigger appetite for the yellow metal.
“It’s been very consistent every December. It’s been a pretty strong performance for gold — especially when there is a rally in the stock market in November,” the firm’s head of fixed income told CNBC’s “Fast Money” on Tuesday.
Gold settled at a new record high Friday. It closed the day up almost 2%, at $2,089.70 an ounce.
Emons listed the economic backdrop and geopolitical backdrop as additional positive catalysts for gold.
“There’s uncertainty next year. We have an election. We don’t know what’s going to happen. We get a recession maybe, maybe not,” said Emons. “At the same time, gold rallies when there’s this risk-on feel in the markets, and that’s really when real rates and interest rates are declining. This gives the gold a really good push for the breakout.”
In a note to clients this week, Emons wrote that months for both gold and stocks are a “rare combo.” Gold gained 3% while the Dow and S&P 500 were both up almost 9% in November.
“[It] tends to occur when markets price in major easing cycles,” he wrote. “Currently, that is going on in a mild manner, which puts the spotlight on the seasonals of gold.”
Emons suggests the strength will continue into next year.
“Central banks are again outbidding gold against dwindling supply, likely setting up the metal for a major breakthrough towards 2100 … lifting boats for laggards like utilities have a shot to claim market leadership by early 2024,” Emons also wrote.
“Fast Money” trader Guy Adami also sees gold shining due to the dollar‘s recent performance.
“If rates continue to go lower, the dollar will go lower. That will be a tailwind for gold,” he said. “Gold is within a whisper of having a huge breakout to the upside.”
As of Friday’s close, gold is up more than 14% so far this year.
Gold bars of different sizes lie in a safe on a table at the precious metals dealer Pro Aurum.
Sven Hoppe | Picture Alliance | Getty Images
This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
Tesla clocks worst week of the year Tesla shares dropped more than 15% last week to close at $211.99 on Friday, marking the worst weekly performance for the stock this year as CEO Elon Musk sounded pessimistic about macroeconomic issues on a recent earnings call. Shares of the electric automaker are still up 96% year-to-date.
Big earnings week Investors will be watching out for an action-packed week of earnings as companies including Microsoft, Meta Platforms, Amazon, Alphabet, General Motors and Ford among others gear up to post their quarterly results. The carmakers will be under the radar this week amid ongoing strikes and contract negotiations with the United Auto Workers union.
X to launch new subscription tiers Owner Elon Musk said X, the social media service formerly known as Twitter, will launch two new tiers of subscriptions for users. One tier will be “lower cost with all features, but no reduction in ads,” while the other is “more expensive, but has no ads,” Musk said.
[PRO] The U.S. is trying to tighten the screws on Chinese AI The artificial intelligence behind ChatGPT-like products and autonomous driving is driving enormous demand for Nvidia’s chips in China. In the past week, however, analysts cut their Nvidia price targets after news the U.S. plans to ban the sale of more high-end semiconductors to China. Here’s what that means for stocks.
Rising Treasury yields, looming interest rate hikes to fight inflation and the heightening conflict in the Middle East drove investors away from risky assets last week.
The yield on the benchmark 10-year Treasury crossed 5% for the first time since 2007 on Thursday, a level perceived by markets as a potential drag on the U.S. economy as it could translate to higher rates on mortgages, credit cards, auto loans and more.
A move into safe-haven gold seemed like a sensible bet, given the worsening crisis in the Middle East. Gold was up 2.5% last week, recording its second consecutive weekly rise after adding 5.22% in the prior week.
Investors are now bracing for a heavy week of earnings as Big Tech companies including Alphabet, Amazon, Meta and Microsoft will take centerstage.
“We’re hopefully going to see some continued positive strength there on the economy and what they see going forward,” said Ryan Detrick, chief market strategist at Carson Group. “The headlines are scary, for sure. But the fundamentals to us are pretty strong. We’re still seeing earnings season that’s going to come in better than expected.”
This will arrive after a mixed batch of earnings from behemoths like Tesla and Netflix last week. Tesla marked its biggest weekly decline after Elon Musk shared his pessimistic view on the macroeconomic landscape, while Netflix shares soared as markets cheered its new ad-tier subscription plan.
Given the huge role advertisers and subscriptions play for the bottom lines of such firms, it was no surprise that Musk turned his attention to improving the usability of social media platform X, formerly known as Twitter.
Musk said. X is gearing up to launch two new tiers of subscriptions for users, in hopes that it could improve the company’s finances and open new revenue streams. Musk’s sweeping changes across the company, including firing most of its employees and reinstating previously banned accounts, scared advertisers away.
This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
Tesla clocks worst week of the year Tesla shares dropped more than 15% last week to close at $211.99 on Friday, marking the worst weekly performance for the stock this year as CEO Elon Musk sounded pessimistic about macroeconomic issues on a recent earnings call. Shares of the electric automaker are still up 96% year-to-date.
Big earnings week Investors will be watching out for an action-packed week of earnings as companies including Microsoft, Meta Platforms, Amazon, Alphabet, General Motors and Ford among others gear up to post their quarterly results. The carmakers will be under the radar this week amid ongoing strikes and contract negotiations with the United Auto Workers union.
X to launch new subscription tiers Owner Elon Musk said X, the social media service formerly known as Twitter, will launch two new tiers of subscriptions for users. One tier will be “lower cost with all features, but no reduction in ads,” while the other is “more expensive, but has no ads,” Musk said.
[PRO] Earnings playbook Big Tech takes center stage in what could be a make-or-break week for S&P 500 earnings. About 150 S&P 500 companies are slated to report, including Microsoft, Meta Platforms, Amazon and Alphabet. Those results come during a tough time for Wall Street, as higher rates and conflict in the Middle East rattle investor sentiment. Here’s how to trade a busy week of earnings.
Rising Treasury yields, looming interest rate hikes to fight inflation and the heightening conflict in the Middle East drove investors away from risky assets last week.
The yield on the benchmark 10-year Treasury crossed 5% for the first time since 2007 on Thursday, a level perceived by markets as a potential drag on the U.S. economy as it could translate to higher rates on mortgages, credit cards, auto loans and more.
A move into safe-haven gold seemed like a sensible bet, given the worsening crisis in the Middle East. Gold was up 2.5% last week, recording its second consecutive weekly rise after adding 5.22% in the prior week.
Investors are now bracing for a heavy week of earnings as Big Tech companies including Alphabet, Amazon, Meta and Microsoft will take centerstage.
“We’re hopefully going to see some continued positive strength there on the economy and what they see going forward,” said Ryan Detrick, chief market strategist at Carson Group. “The headlines are scary, for sure. But the fundamentals to us are pretty strong. We’re still seeing earnings season that’s going to come in better than expected.”
This will arrive after a mixed batch of earnings from behemoths like Tesla and Netflix last week. Tesla marked its biggest weekly decline after Elon Musk shared his pessimistic view on the macroeconomic landscape, while Netflix shares soared as markets cheered its new ad-tier subscription plan.
Given the huge role advertisers and subscriptions play for the bottom lines of such firms, it was no surprise that Musk turned his attention to improving the usability of social media platform X, formerly known as Twitter.
Musk said. X is gearing up to launch two new tiers of subscriptions for users, in hopes that it could improve the company’s finances and open new revenue streams. Musk’s sweeping changes across the company, including firing most of its employees and reinstating previously banned accounts, scared advertisers away.
Viewing cryptocurrency as “digital gold” may be a mistake.
State Street Global Advisors’ George Milling-Stanley, whose firm runs the world’s largest gold exchange-traded fund, believes cryptocurrency is no substitute for the real thing due its vulnerability to big losses.
“Volatility does not back up any claims for crypto to be a long-term strategic asset as a competitor to gold,” the firm’s chief gold strategist told CNBC’s “ETF Edge” earlier this week.
Milling-Stanley’s firm is behind SPDR Gold Shares, the world’s largest physically backed gold ETF. It has a total asset value of more than $57 billion as of last week, according to the company’s website. The ETF is up 7% year to date as of Friday’s market close.
Milling-Stanley believes gold’s 6,000-year history as a monetary asset serves as a significant sample basis to understand the benefits of investing in gold.
“Gold is a hedge against inflation. Gold’s a hedge against potential weakness in the equity market. Gold’s a hedge against potential weakness in the dollar,” he noted. “To me, historically, the promise of gold for investors has … overtime [helped] to enhance the returns of a properly balanced portfolio.”
The precious metal is having trouble this year staying above the $2,000 an ounce mark. But Milling-Stanley believes the economic backdrop bodes well for gold — recession or not.
“It’s pretty clear that we’re liable to be in a period of slow growth. … Historically, gold has always done well during periods of slower growth,” Milling-Stanley said.
Milling-Stanley also believes the relaxation of Covid-19 restrictions in China should spark more demand for gold. It’s known as the world’s largest consumer of gold jewelry behind India, according to the World Gold Council.
“It’s not just China and India. It’s Vietnam, it’s Indonesia, it’s Thailand and Korea. It’s a whole raft of Asian countries that are really the main drivers of gold jewelry demand,” Milling-Stanley said.
Gold settled at $1,960.47 an ounce Friday. The commodity is up more than 7% so far this year.
After an underwhelming six months, gold is seeing renewed interest as several factors align in its favor, according to Catherine Doyle, an investment specialist at London-based Newton Investment Management. Gold prices are up 12% this year and are now trading at $2049 per troy ounce on the New York spot price market. However, the precious metal was flat in 2022 despite inflation running at a double-digit percentage. @GC.1 1Y line For Doyle, gold’s prospects have improved due to its close relationship with real interest rates. Gold prices typically surge if markets expect low interest rates in a high inflationary environment. “It also does look like the interest rate path will be shallower than previously anticipated because economies are just too fragile to bear materially high rates for long period,” Doyle told CNBC’s “Squawk Box Europe” Friday. Interest rate traders have priced in a 75% chance of a rate cut by the U.S. Federal Reserve by Nov. 1 this year, according to the CME FedWatch Tool . This is despite Fed forecasts that inflation will remain above the 2% target at 3.6% this year. Doyle also mentioned that gold’s performance could benefit from increased buying by sovereign wealth funds, particularly in emerging markets like China. Central banks, labeled as “official” buyers in the trade, were also big buyers of gold in 2022 accounting for 23% of total demand, according to investment bank UBS. It marked the thirteenth consecutive year of net purchases and the highest level of annual demand on record dating back to 1950. “We also see official sector demand remaining strong for at least another year, with select central banks determined to diversify their reserves away from US dollars and US government bonds. In a historical context, central bank purchases tend to be less sensitive to prices,” UBS’ precious metal strategists led by Wayne Gordon said in a note to clients on Apr. 4. UBS’ Gordon also echoes Doyle’s outlook, as spot gold prices recently broke through the $2,000 per ounce barrier following the banking turmoil in March. The strategist expects gold prices to reach $2,200 per ounce over the next 12 months. How to trade gold Doyle’s preferred method for gaining exposure to gold is through exchange-traded commodities (ETCs), which are backed by physical gold. Unlike exchange-traded funds which invest in a variety of stocks, ETCs allow investors to focus on a single commodity. ETCs are structured as notes, which are debt instruments underwritten by a bank for the issuer and backed by the commodities they track as collateral. They can be volatile investments as they are linked to a commodity’s price. However, ETCs avoid some of the potential pitfalls of investing in stocks, according to Doyle. “We have on occasions had exposure to gold miners, but what we find is … often you get some noise around the mining exposure through perhaps weak management or poor decisions,” continued Doyle. “And that can just create additional noise that we don’t really want.” A number of ETCs for gold exist, such as the iShares Physical Gold ETC , Invesco Physical Gold , WisdomTree Core Physical Gold , Xtrackers Physical Gold ETC , and Xetra-Gold . Gold has been a strategic holding in Newton’s Real Return strategy for over a decade as it offers protection against various risks and can act as an “insurance policy in times of credit stress,” Doyle said, such as the recent banking sector turbulence.
There are two big watchers on our list for the week ahead, and one of them — believe it or not — is not an inflation reading. The consumer price report (CPI), which calculates the average change over time in prices shoppers pay for goods and services, comes out Wednesday before the opening bell. While not the Federal Reserve’s preferred measure of inflation — that’s the core personal consumption expenditure (PCE) price index — the CPI should provide some insight on the central bank’s battle with inflation. We want to see the rate of price increases on an annual basis continue to come down. The second big event next week is the unofficial start of earnings season on Friday, led by the big banks including JPMorgan (JPM), Citigroup (C) and Club holding Wells Fargo (WFC). While the CPI and other data have the potential to move the market, we’d argue the commentary from these household financial names could be even more important for three reasons: Earnings commentary is much more real-time data and color compared to the backward-looking economic releases. As a result, management discussions give us a better look at the current operating environment. The collapse of Silicon Valley Bank (SVB) and two other U.S. lenders in March has made many investors understandably worried about the banking sector. We will be listening for any talk about tighter lending standards — a factor that has helped do some of the Fed’s tightening work for it — along with the flow of deposits from regional institutions to the “too big to fail” banks. Less movement of deposits would improve investor sentiment as the health of the financial sector influences Fed’s ability to avoid a hard landing for the economy. Banks can provide a better look at the state of the consumer, specifically savings and credit levels, which in turn show how well positioned the consumer is to ride out an economic slowdown. In his annual letter to shareholders on Tuesday, JPMorgan CEO Jamie Dimon warned that the current banking crisis isn’t over yet, and that once over there will be repercussions for many years. Dimon also called for more forward-looking regulation . Other data next week includes the producer price index report on Thursday and the retail sales report on Friday. The latter will show consumer spending habits, which is super important considering private consumption accounts for over 65% of U.S. GDP. Also on Friday, we will see what’s happening in the manufacturing, mining, and electric and gas utilities industries, which together make up another 14% of GDP. Within the portfolio, Wells Fargo reports results on Friday before the opening bell. Here are some other earnings reports and economic numbers to watch in the week ahead: Monday, April 10 Before the bell: Greenbrier (GBX), iMedia Brands (IMBI) After the bell: PriceSmart (PSMT), Tilray (TLRY) Tuesday, April 11 Before the bell: Albertsons (ACI), CarMax (KMX) Wednesday, April 12 Before the bell: Apogee Enterprises (APOG) After the bell: Rent the Runway (RENT), Sportsman’s Warehouse (SPWH) 8:30 a.m. ET: Consumer Price Index 2:00 p.m. ET: FOMC Minutes Thursday, April 13 Before the bell: Delta Air Lines (DAL), Fastenal (FAST), Infosys Tech (INFY), Progressive (PGR) After the bell: Washington Federal (WAFD) 8:30 a.m. ET: Initial Claims 8:30 a.m. ET: Producer Price Index Friday, April 14 Before the bell: BlackRock (BLK), Citigroup (C), JPMorgan (JPM), PNC Financial (PNC), UnitedHealth Group (UNH), Wells Fargo (WFC) 8:30 a.m. ET: Retail Sales 9:15 a.m. ET: Industrial Production & Capacity Utilization Looking back Only the Dow Jones managed to close higher this holiday-shortened trading week as investors booked some tech profits and rotated into more defensive areas of the market. The most important macroeconomic update of the week came on Friday while the market was closed for Good Friday. The March nonfarm payrolls report showed the economy added 236,000 jobs in March, just below the 238,000 expected. The unemployment rated ticked down to 3.5% (from 3.6%) while wage inflation advanced 4.2% annually, the lowest level since June 2021 and below the 4.3% expected on the Street. It was a Goldilocks report, in other words, and pushed the futures into positive territory on Friday. The roughly inline payrolls additions indicates a resilient economy (not too cold), while the slightly lower-than-expected wage inflation shows the Fed’s strategy to combat inflation is working (not too hot). On Thursday, initial jobless claims for the week ended April 1 came in at 228,000, a decrease of 18,000 from the prior week, which was revised higher (to 246,000 from 198,000 initially reported) and above the 200,000 expected. On Wednesday, March ISM Services data came in below expectations at 51.2% (versus estimate of 54.3%). Though the reading being above 50 shows expansion, this was the weakest reading we have seen since May 2020 and indicates slowing growth. Also on Wednesday, the March ADP employment report came in at 145,000, below the expected 210,000. On Tuesday, the February Job Openings and Labor Turnover Survey (JOLTS) results , which pointed to fewer job openings that expected and fell below 10 million for the first time in nearly two years. We also got the February report on Factory Orders, which fell 0.7% monthly, following a 2.1% monthly decline in January (revised lower from the 1.6% decline previously reported). The report was weaker than the 0.5% monthly decline analysts were expecting. The March ISM Manufacturing report on Monday was 46.3%, below the expected 47.5%, indicating the fifth consecutive month of contraction in the manufacturing sector. Notably, the monthly decline from the 47.7% level in February shows the rate of contraction is accelerating. Under the hood, the utilities sector led to the upside, followed by health care and energy. Industrials led to the downside, followed by consumer discretionary and materials. Meanwhile, the U.S. dollar index stands at around 102. Gold is trading just above the $2,000 per ounce. WTI Crude prices advanced to $80 per barrel, while the yield on the 10-year Treasury pulled back to about 3.4%. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co., speaks during the Institute of International Finance (IIF) annual membership meeting in Washington, DC, US, on Thursday, Oct. 13, 2022.
Ting Shen | Bloomberg | Getty Images
There are two big watchers on our list for the week ahead, and one of them — believe it or not — is not an inflation reading.
Another week, another important piece of inflation data for the market to digest. The personal spending and income report, out this coming Friday, has the Federal Reserve’s preferred measure of inflation: the core personal consumption expenditure (PCE) price index. The Fed likes this reading because it looks at changes in consumer behavior, including whether buyers are substituting goods based on prices. In comparison, the consumer price index (CPI), released this past week, only tracks price changes over time. The PCE price index report is even more important following the Fed’s decision this week to raise rates by 25 basis points, as the Street tries to determine the likelihood of the central bank pulling off a soft landing, or if it is hiking us into a recession. It was a positive week for the major averages, despite some midweek volatility driven by comments from Treasury officials. In his remarks after the rate decision, Fed Chair Jerome Powell said a rate cut by year-end was not the committee’s base case, meaning he doesn’t see a rate cut in 2023. Shortly thereafter, Treasury Secretary Janet Yellen, speaking to the Senate Appropriations subcommittee, appeared to double back on the idea that all bank deposits nationwide would be guaranteed by the U.S. government, pushing stocks lower. The PCE price index and other inflation reports face heightened scrutiny in the coming months as the market is becoming more at odds with the Fed’s base case. Consider the CME FedWatch Tool , which tracks market experts’ expectations, shows a pause at the May meeting (88% probability), followed by a cut of 25-50 basis points at the July meeting. The market is now placing the highest likelihood on the U.S. entering 2024 somewhere in the 375-425 basis-point range, well below the current target rate of 475-500. Part of the reason behind the market’s unwillingness to accept the Fed’s commentary likely comes from two key factors. First, there is the view that the Fed is looking at where we are now and not so much where we are headed. The Fed tends to focus on backward-looking macroeconomic updates, while the market looks at real-time commodity price fluctuations, along with forward-looking updates from corporate management teams during earnings calls and investor conferences. Second, there are mounting concerns about the banking sector. While the magnitude of the problem is up for debate, most experts agree that the Silicon Valley Bank blowup and resulting tightening of lending standards by the banks will constrain financial conditions overall. “Financial conditions seem to have tightened, and probably by more than the traditional indexes say. … The question for us though is how significant will that be — what will be the extent of it, and what will be the duration of it,” said Powell. Exactly how many basis points of tightening these stricter lending standards are equivalent to remains to be seen. However, the Fed was certainly not factoring the banking turmoil into its thinking a month ago and as a result, many believe that the Fed will have to reverse course. Put another way, if the banking crisis is worth 100 basis points of tightening, then the Fed may have gone 100 basis points too far without being able to know it. Therefore, the thinking would be that they need to cut by 100 basis point in order to get back on track. Whether Powell or the market proves to be correct will depend entirely on the path of inflation. Prices alone will determine where interest rates will go. No portfolio companies reported earnings this past week and none are on next week’s calendar. However, here are some other earnings and economic numbers to watch in the week ahead: Monday, March 27 Before the bell: BioNTech (BNTX), Carnival (CCL) After the bell: PVH Corp (PVH) Tuesday, March 28 Before the bell: Core & Main (CNM), Elbit Systems (ESLT), IHS (IHS), McCormick & Co (MKC), Walgreens Boots Alliance (WBA) After the bell: Cal-Maine Foods (CALM), Dave & Busters (PLAY), Jefferies Financial (JEF), Lululemon (LULU), Micron (MU) 10 a.m. ET: Consumer Confidence Wednesday, March 29 Before the bell: Cintas (CTAS), Paychex (PAYX) After the bell: Concentrix Corp (CNXC), HB Fuller (FUL), RH (RH) 10 a.m. ET: Pending Home Sales Thursday, March 30 Before the bell: AngioDynamics (ANGO) After the bell: Skillz (SKLZ), BlackBerry Ltd. (BB) 8:30 a.m. ET: Initial Claims 8:30 a.m. ET: Gross Domestic Product; Price Index Friday, March 31 Before the bell: 8:30 a.m. ET: Personal Spending & Income 8:30 a.m. ET: Personal Consumption Expenditures Club trades of the week Despite oversold conditions in the market this past week, as measured by our trusted S & P 500 Short Range Oscillator , we were cautious. We made only one buy : 25 shares of Pioneer Natural Resources (PXD), bringing ownership position in PXD to 175 shares and increasing its portfolio weighting to 1.26% from 1.09%. Sometimes an exogenous event, like a banking crisis, trumps our discipline to buy enthusiastically when the Oscillator flashes oversold. Looking back One day before Wednesday’s Fed rate hike and the dueling bank comments from Powell and Yellen that confused and sunk markets that day, February existing home sales were reported Tuesday to have jumped a much stronger than expected 14.5%. It was the first monthly increase in a year and the largest increase since July 2020. Buyers came back into the housing market as mortgage rates followed bond yields lower on the banking troubles. On Thursday, initial jobless claims for the week ending March 18 came in at 191,000, a decrease of 1,000 from the prior week and below the 197,000 expected. Also Thursday, we learned that in February, new home sales increased 1.1% month over month, to a seasonally adjusted annual rate of 640,000. That was a tad below the 650,000 rate analysts were looking for. As for the broader market this past week, the S & P 500 Communication Services sector led to the upside followed by Energy and Materials. Real Estate led to the downside followed by Utilities. The U.S. dollar index hovered just above 103. Gold traded at nearly $2,000 per ounce. West Texas Intermediate crude prices remained in the upper-$60s per barrel region. The yield on the 10-year Treasury eased back slightly to just under 3.4%. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust is long.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
US Treasury Secretary Janet Yellen testifies before the Senate Finance Committee on the proposed budget request for 2024, on Capitol Hill in Washington, DC, March 16, 2023.
Andrew Caballero-reynolds | AFP | Getty Images
Another week, another important piece of inflation data for the market to digest.
The personal spending and income report, out this coming Friday, has the Federal Reserve’s preferred measure of inflation: the core personal consumption expenditure (PCE) price index. The Fed likes this reading because it looks at changes in consumer behavior, including whether buyers are substituting goods based on prices. In comparison, the consumer price index (CPI), released this past week, only tracks price changes over time.
