John Hancock: Weekly Market Recap Week Ended December 8th

Steady jobs market

November’s jobs growth figure of 199,000 came in slightly above most economists’ expectations and extended a recent run of moderate but solidly positive labor market momentum. The latest figure was above October’s jobs growth of 150,000 but below the 12-month average of 240,000. The unemployment rate slipped to 3.7% from 3.9% the previous month.

Lowered expectations

During October and November, analysts cut their fourth-quarter earnings-per-share estimates for S&P 500 companies by an average of 5.0%, according to FactSet. While analysts typically cut estimates during the first two months of a quarter,  the latest cuts have been larger than the 20-year average 2.9% reduction.

Inflation fears easing

A survey of U.S. consumers found that their expectations for inflation fell to the lowest level since March 2021. The University of Michigan reported on Friday that its December sentiment survey found that consumers expect the annual inflation rate to be about 3.1% 12 months from now—down sharply from the 4.5% figure in the November survey.

Busy week ahead

Investors have plenty to keep an eye on in the new week, highlighted by a monthly Consumer Price Index report due out on Tuesday, a U.S. Federal Reserve meeting that concludes on Wednesday, and a monthly update on retail sales scheduled on Thursday. While the Fed is expected to keep interest rates unchanged in its final meeting of 2023, policymakers could offer clues as to the timing of potential rate cuts in 2024.

Source: https://www.jhinvestments.com/weekly-market-recap