The Weekly Wrap: November 28, 2022

Week in Review

The Dow Jones Industrial Average is down only 5.5% for the year after leading equities higher once again last week. The S&P 500 rose 1.5%, and the Nasdaq Composite rose 0.7%. Crude oil has now erased nearly all of its year-to-date gains after falling nearly 5% in the holiday-shortened week. Friday’s close was its lowest since early January. Gold prices erased an early-week selloff to close in the green, aided by a weaker US Dollar which fell 0.9% to close at levels not seen since August. Bitcoin is down 64% on the year after another weekly drop.

Relatively Speaking

Cyclical areas of the market led markets higher over the last month, with the Materials and Industrials sectors each up more than 11%. Nine of eleven sectors posted gains, driving the S&P 500 index to a gain of more than 4%. Communication Services and Consumer Discretionary both fell 4%.

For the year, Energy is still the top performing sector, up more than 65%. It’s outperformed the broader index by 96% since December. Technology and tech-like groups have seen the most damage, while sectors that are less exposed to economic activity, like Consumer Staples and Health Care, have outperformed.

What’s Ahead

It’s jobs week. The ADP employment report and JOLTS job openings both arrive on Wednesday, then we’ll get the BLS payrolls report on Friday. The second estimate of third quarter GDP is released on Wednesday, followed by personal income and spending, the PCE deflator, and manufacturing survey results from S&P Global and the Institute for Supply Management on Thursday. We’ve also got home price data and Consumer Confidence on Tuesday. Fed Chair Jerome Powell could move markets when he speaks at a Brookings event on Wednesday afternoon.

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