The Long and Short of it, week ending 14 Jan 2022
Posted:U.S. stock markets moved lower last week with the Dow Jones Industrial Average underperforming
both the Nasdaq Composite Index and the S&P 500 Index. Elevated inflation levels exhibited by both
CPI and PPI releases Wednesday and Thursday, respectively, capped market gains strengthening
expectations of a more aggressive Fed. The S&P 500 and Nasdaq Composite Indexes, up over 1%
through Wednesday, fell sharply Thursday following a PPI release showing a record high 9.7% YoY
increase, pushing both indexes into negative territory for the week. Friday’s weaker-than-expected
retail sales report and disappointing JPMorgan earnings guidance limited S&P 500 gains and pushed
the Dow Jones Industrial Average lower. The 10-year U.S. Treasury rate rose 2bps on the week but
with significant swings, falling 5bps to 1.70% Thursday and then rising 9bps to 1.79% Friday. 10-year
U.S. real rates were also volatile, falling 9bps to -0.86% Tuesday and then rising 16bps the rest of the
week to finish at -0.70%. At week’s end, the S&P 500 Index decreased 0.3% to 4,662.85, the Nasdaq
Composite Index decreased 0.3% to 14,893.80, the Dow Jones Industrial Average fell 0.9% to
35,911.28, the 10-year U.S. Treasury rate increased 2bps to 1.79% and the U.S. dollar (as measured
by the ICE U.S. Dollar index - DXY) weakened 0.6%.
For More Detail read the following PDF.
The Long and Short of it, week ending 14 Jan 2022
