Market surveillance: December 17 | rdnewsnow.com



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U.S. indices ended slightly lower on Tuesday after data from the Department of Labor showed the producer price index for final demand in the 12 months to November rose 9.6%, its biggest gain since November 2010. This follows an 8.8% increase in October. In Canada, the TSX lost 100 points, again due to falling crude prices.

U.S. stocks rose on Wednesday after Fed officials approved plans to step up the pace of the central bank’s speed-down efforts. The decision to respond to high inflation sets the stage for interest rate hikes starting in the spring. At Wednesday’s close, the Dow Jones jumped 383 points, while the S&P 500 and Nasdaq rose 76 and 328 points respectively. In Canada, the TSX added 120 points. On the economic news side, US retail sales rose 0.3% seasonally in November, slightly down from the October pace. In Canada, the country’s inflation rate remained at 4.7% in November, matching the rate for October.

US stocks fell on Thursday as weakness from big names in tech pushed all three major indices down. The Nasdaq was the hardest hit, dropping 385 points, while the Dow and S&P 500 lost 30 and 41 points respectively. In Canada, the TSX lost 29 points.

North American markets lose ground

For the four trading days covered in this report, the Dow Jones fell 73 points to close at 35,898, the S&P 500 lost 43 points to settle at 4,669, while the tech-rich Nasdaq plunged 450 points to close at 15,180. In Canada, the TSX lost 150 points to finish at 20,740.

Strategy

First U.S. state unemployment claims jumped to 206,000 for the week ending December 11

First claims for state unemployment benefits rose 18,000 from the revised level of the previous week, while continuing claims, reported with a one-week lag, recorded a new low of the pandemic era of 1.845 million (1.943 million expected), a decrease of 154,000. Although initial claims have risen from the 52-year low of last week, recent readings have been particularly volatile due to challenges in adjusting data for seasonal factors during the holidays. Yet the trend since the start of the year shows a broader improvement in the labor market, as the easing of restrictions and the wider economic reopening have prompted employers to increase hiring in order to meet strong consumer demand. . Despite steep wage increases, however, employers have struggled to hire and retain new workers as labor shortages persist and the labor market remains tight. At its last meeting, the Fed attributed large improvements in employment data to one of the reasons for the doubling of the pace of reduction in its asset purchases. increase in hospitalizations linked to Covid.

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