The Commerce Department also reported consumer spending rose 1.8% last month from December, the largest increase in nearly two years. The survey’s results renewed anxiety among investors that the Fed would continue its aggressive tightening campaign against inflation.
The drop in optimism pressured the major indexes, as the Dow Jones dropped 3% for its fourth consecutive losing week, while the S&P 500 shed 2.7% in its worst week since early December and the tech-heavy Nasdaq sank 3.3%.
Data compiled by 22V Research has found that rising interest rates have increased the correlation between growth and value stocks to the highest level since at least 2005.
This week, investors will remain keen on the retail sector, with earnings from Target (TGT) on deck before market open on Tuesday after Walmart (WMT) warned of cautious profit guidance for the year ahead. Home improvement retail giant Home Depot (HD) also had disappointing guidance for fiscal 2023.
Elsewhere on the earnings calendar are results from Costco (COST), Macy's (M), Dollar Tree (DLTR), and Kohl's (KSS) to feature the retail side.
Meanwhile, the share of companies topping analysts' expectations in the fourth quarter has been low compared to history. Data from FactSet showed that 68% of S&P 500 companies reported fourth quarter earnings that beat expectations, down from the five-year average of 77% and the 10-year average of 73%.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Ok