Inflation cools and markets soar, led by tech stocks: How we're making sense of this big week

Published Fri, Nov 11 20224:17 PM ESTUpdated Wed, Nov 16 20229:37 AM EST

Markets closed higher for the week after a stellar rally Thursday that saw Big Tech stocks soar on the back of weaker-than-expected consumer price index (CPI) data for October. The S & P 500 closed up more than 5% for the week, its best week since June. Bond yields and the U.S. dollar fell, while investors hoped the CPI news could slow the Federal Reserve's pace of interest rate hikes next month. We also received updates related to cost-cutting initiatives at two tech Club holdings: Meta Platforms (META) announced its laying off more than 11,000 employees and reduced its expense outlook. Meanwhile, Club holding Amazon (AMZN) is reportedly conducting a broad cost-cutting review , according to The Wall Street Journal. While we aren't out of the woods – geopolitical challenges persist, while inflation and the dollar still remain at multi-decade highs – this week's updates certainly provide cause for optimism. But we think more data is needed before the Fed is able to tone down its hawkish commentary on rates. Given the magnitude of the rally, we provided a rapid-fire update on all 32 stocks in our portfolio. And look forward to discussing these dynamics and more at next week's "Monthly Meeting." All sectors closed out the week higher, led by technology, communication services and materials. Meanwhile, the U.S. dollar index pulled back to around the 106 level. Gold advanced to around $1,765 per ounce. West Texas Intermediate crude prices pulled back to around $89 a barrel, while the yield on the 10-year Treasury fell to around the 3.8% level. Looking back Club holdings Disney (DIS) and Wynn Resorts (WYNN) reported quarterly results this past week. On the macroeconomic front, updates were scarce this week. But the October CPI report was a huge tailwind for the major indices, as the key inflation reading came in below expectations. The headline reading was at 7.7% year-over-year, while the core rate, which removes the impact of food and energy prices due to their volatile nature, came in at 6.3% versus a year ago. Both readings were below expectations of 7.9% and 6.5%, respectively. On Thursday, initial jobless claims for last week came in at 225,000, an increase of 7,000 from the prior week and above expectations of 225,000. A weak CPI print combined with more-than-expected jobless claims is exactly what investors were looking for. What's ahead Quarterly earnings continue next week. Within the portfolio, we'll hear from TJX Companies (TJX) on Wednesday before the opening bell, and from Cisco Systems (CSCO) and Nvidia (NVDA) the same day after the closing bell. Here are some other earnings reports and economic indicators to watch out for in the week ahead: Monday, Nov.14 Before the bell: AECOM (ACM), Dentsply Sirona (XRAY), 360 Finance (QFIN), MINISO Group (MNSO), Monday.com (MNDY), Oatly (OTLY), Thoughtworks (TWKS), Tower Semi (TSEM), Venator Materials (VNTR) After the bell: AMMO (POWW), Azenta (AZTA), BuzzFeed (BZFD), HighPeak Energy (HPK), Westinghouse Solar (WEST) Tuesday, Nov. 15 Before the bell: Walmart (WMT), Aramark (ARMK), Berry Global (BERY), Endava (DAVA), Energizer (ENR), Evoqua Water (AQUA), HUYA (HUYA), Krispy Kreme (DNUT), Valvoline (VVV) After the bell: Advance Auto Parts (AAP), Atento (ATTO), Ferroglobe (GSM) 8:30 a.m. ET: Producer Price Index Wednesday, Nov. 16 Before the bell: Target (TGT), ZIM Integrated Shipping (ZIM), Arcos Dorados (ARCO), Grab Holdings (GRAB) After the bell: Bath & Body Works (BBWI), Bowlero (BOWL), Hillenbrand (HI), Sonos (SONO) 8:30 a.m. ET: Retail Sales Thursday, Nov. 17 Before the bell: Alibaba (BABA), BJ's Wholesale (BJ), BrightView (BV), Cellebrite (CLBT), Dole (DOLE), Kohl's (KSS), Macy's (M), Weibo (WB) After the bell: Applied Materials (AMAT), Dolby Labs (DLB), Farfetch (FTCH), Gap (GPS), Keysight Tech (KEYS), Palo Alto Networks (PANW), Post (POST), Ross Stores (ROST) 8:30 a.m. ET: Initial Jobless Claims 8:30 a.m. ET: Housing Starts Friday, Nov. 18 Before the bell: Buckle (BKE), Foot Locker (FL), JD.com (JD), Twist Bio (TWST), Spectrum Brands (SPB) 10:00 a.m. ET: Existing Home Sales ( See here for a full list of the stocks 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.

People walk outside of the New York Stock Exchange on July 25, 2022 in New York City.

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