The S&P 500 index slipped 0.4% last week, ending a winning streak that had lasted for most of 2024, amid mixed economic data and quarterly results.
The index set new record closes on Monday and Thursday but a 0.5% loss on Friday took it below the week-earlier close.
The only other weekly loss in 2024 was the first week of the year. The index is still up 4.9% for the year to date.
Investors parsed through a mixed round of economic data including the US seasonally adjusted consumer price index and the US producer price index, both for January, each of which rose more than expected. Retail sales for January also raised concers and results fell more than expected. Industrial production also missed expectations.
Related: Inflation Just Won’t Go Away: January Consumer Price Index
Still, home-builder confidence grew more than expected this month and weekly unemployment claims were lower than expected. US consumer sentiment is up so far in February as people felt more assured about the economy, preliminary data from the University of Michigan’s Surveys of Consumers released Friday showed.
Though quarterly earnings continued to come in mostly better than expected, overall sales slightly missed views.
Some 72% of the S&P 500’s components that reported quarterly results in the last week posted earnings above analysts’ expectations. The week’s overall S&P 500 earnings came in about 6.9% above forecasts, according to Bloomberg data. While 55% of companies reported better-than-expected sales, revenue from S&P 500 companies were 1.9% below expectations.
The technology sector had the largest percentage drop of the week, down 2.5%, followed by communication services, which shed 1.6%. Also in the red, consumer discretionary slipped 0.8% and real estate edged down 0.2%.
Earnings reports expected this week include Walmart (WMT), Home Depot (HD), NVIDIA (NVDA) and Intuit (INTU).
Economic data will be on the lighter side. Reports will include January’s US leading economic indicators on Tuesday and January existing home sales on Thursday. The minutes of the Federal Open Market Committee’s January policy meeting are scheduled for Wednesday.
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