It’s hard to believe that 2021 is over and we’re already halfway through February. Looking back, there were some wild financial headlines in 2021 — from volatility after the GameStop “meme stock” saga, concerns focused on inflation, and even historic stock market highs. There’s a lot to digest, so we asked our friends at City National Rochdale to compile the most important information into a simple short video.
Inside we’ll review what happened in the markets 2021 and more importantly, what may unfold in 2022. Click here to watch it.
Run time: 12 minutes, 9 seconds
For a lot of people, last year didn’t turn exactly how they’d planned. It was another year of uncertainty and hopes of returning to a post pandemic normalcy. A lot of us hit the pause button on goals or projects. So, what can you do in 2022 to move closer to your goals? Here are some action items for you:
- If your life or personal situation changes, keep us in the loop. We want to hear about important family events, like births and deaths.
- We also care about health issues, employment changes, and any financial developments that may change your situation. And if you find yourself thinking about new goals or reevaluating your priorities, share your thoughts with us so we can help you pursue the life you most desire.
- Remember to go over your estate documents, beneficiary designations, and other paperwork to make sure they’re all up to date. A well-organized estate is one of the best gifts you can give your family.
We’re here to talk through whatever financial questions or worries you may have. Our priority is always to help you make informed choices and stay on track.
Until next week,
Your Eagle Wealth Team
The Week on Wall Street
A hot inflation print and the growing concern of a Russian invasion of Ukraine sent stocks tumbling late in the week, leaving major indices lower for the five-trading days.
The Dow Jones Industrial Average skidded 1.00%, while the Standard & Poor’s 500 retreated 1.82%. The Nasdaq Composite index slumped 2.18%. The MSCI EAFE index, which tracks developed overseas stock markets, advanced 2.26%.1,2,3
A Double Whammy
Mid-week, a fresh batch of positive corporate earnings surprises lifted investor sentiment, helping stocks claw back losses with technology stocks posting some of the sharpest gains. But January’s inflation report, set for release on Thursday morning, remained investors’ biggest concern.
When the report hit, it showed accelerating inflation, and stocks dropped and bond yields bounded higher. Stocks managed to recover from the initial reaction to the unexpectedly high inflation number. But when the President of the Federal Reserve Bank of St. Louis commented that the Fed may consider a more aggressive move against inflation, stocks resumed their slide lower. The stock skid accelerated into Friday on White House reports that an invasion of Ukraine by Russian forces may be imminent.4
Prices of consumer goods accelerated in January, rising 0.6% from the previous month and 7.5% year-over-year. This annual inflation rate was the highest since 1982. Core inflation, which excludes the more volatile food and energy prices, was 6.0% higher from last January.5
Many economists and market analysts had expected inflation to moderate, but driven by a surge in prices of used cars, gasoline, and energy, inflation remained at elevated levels. The persistence of inflation at these heights has fueled investor concerns that the Fed might consider a more aggressive 50-basis points increase in short term interest rate.
THE WEEK AHEAD
Key Economic Data
Tuesday: Producer Price Index (PPI).
Wednesday: Retail Sales. Industrial Production. FOMC Minutes.
Thursday: Housing Starts. Jobless Claims.
Friday: Existing Home Sales. Index of Leading Economic Indicators.
Source: Econoday, February 11, 2022
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
Companies Reporting Earnings
Tuesday: Zoetis, Inc.(ZTS), Devon Energy Corporation (DVN), Marriott International, Inc. (MAR), ViacomCBS, Inc. (VIAC).
Wednesday: Nvidia Corporation (NVDA), Cisco Systems, Inc. (CSCO), Applied Materials, Inc. (AMAT), Shopify, Inc. (SHOP), DoorDash (DASH).
Thursday: Roku, Inc. (ROKU), Walmart, Inc. (WMT), The Southern Company (SO).
Friday: Deere & Company (DE).
Source: Zacks, February 11, 2022
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.