Week in review, week ahead: Street bounces back but now awaits key inflation data

Published Fri, Sep 9 20224:40 PM EDT

Stocks rallied on Friday to help all three major averages snap three-week losing streaks. The Dow finished up 2.8% on the holiday-shortened week, while the S & P 500 rose 3.8% and the Nasdaq gained 4.2%. It was a welcome ending to the week, as markets have been choppy lately with Wall Street weighing the next interest-rate hike from the Federal Reserve. Fed chair Jerome Powell spoke Thursday morning, saying central bankers need to keep at it when it comes to tightening monetary policy to fight inflation. Expectations of a 0.75 percentage point rate hike later this month have risen. A move of that magnitude would be the third 0.75 percentage point increase in a row. Bond yields rose on Thursday from the previous session after the European Central Bank hiked rates to fight inflation, but then changed little on Friday. We're closely watching the 10-year Treasury note because there has been a strong inverse relationship between yields and stocks. When rates are lower, the market tends to be positive. When rates are up, the market tends to sell off. The dollar was down slightly on Friday and that served to help stocks too, especially those multinational companies that do a ton of business overseas. The market remains oversold, according to the S & P Short Range Oscillator . All 11 Sectors were positive for the week, led by consumer discretionary, up 5.62%. Energy was the worst performer, up 0.60%. Meanwhile, the U.S. dollar index is holding at around the 109 level. Gold stands at $1,726 per ounce. WTI crude prices are hovering around the $86 per barrel level. The yield on the 10-year Treasury is around 3.3%. Looking back No portfolio companies reported earnings this week. On the macroeconomic front: On Tuesday, the ISM Services PMI was reported at 56.9% for the month of August, ahead of expectations of 55.4% and indicating the 27 th consecutive month of expansion for the services sector. On Thursday, initial jobless claims for the week ending Sept. 3 came in at 222,000, a decrease of 6,000 from the prior week and below expectations of 235,000. What's ahead Next week is a big one for the Club. Starbucks (SBUX) hosts its investor meeting on Tuesday, where we'll get more detail on investments the company is making for its U.S. reinvention plan. Also on Tuesday we'll receive the latest CPI data, which is an important measure of inflation. We're hoping for a flat to down month-over-month reading — a good possibility given the decline in prices of gasoline and some other commodities. On Thursday, Humana (HUM) has its investor update, where we should get a clearer picture of the health insurer's long-term earnings growth target. We also have our Monthly Meeting on Thursday . Please send in your questions and limit them to questions about the stocks in the portfolio or general investing. No portfolio companies are set to report earnings next week. Here are some other earnings reports and economic numbers to watch in the week ahead: Monday, Sept. 12 After the bell: Oracle (ORCL), Matrix Services (MTRX), MIND Tech (MIND), Rent the Runway (RENT) Tuesday, Sept. 13 Before the bell: Core & Main (CNM) After the bell: InnovAge Holding (INNV), Vintage Wine (VWE), Aspen Group (ASPU) 8:30 a.m. ET: Consumer Price Index Wednesday, Sept. 14 Before the bell: BRP Inc (DOOO) After the bell: High Tide (HITI) 8:30 a.m. ET: Producer Price Index Thursday, Sept. 15 Before the bell: MYT Netherlands (MYTE) After the bell: Adobe (ADBE) 8:30 a.m. ET: Initial Jobless Claims 8:30 a.m. ET: Retail Sales 9:15 a.m. ET: Industrial Production & Capacity Utilization Friday, Sept. 16 Before the bell: AutoZone (AZO) (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.

Traders work during the opening bell at the New York Stock Exchange (NYSE) on August 16, 2022 at Wall Street in New York City.

Angela Weiss | AFP | Getty Images