Weekly Market Commentary December 5th to December 9th 2022

October U.S. factory orders increased 1%, ahead of the 0.7% estimate and up 12.8% on a year-over-year basis. This is the third consecutive monthly increase, reflecting resilient demand for goods despite elevated prices.

The Producer Price Index (PPI) came in higher than estimated with month-over-month at 0.3% (0.2% est.) and year-over-year at 7.4% (7.2% est.). Core PPI, which excludes food and energy, was up 0.4% month-over-month and up 6.2% from a year ago, a decline from 6.6% in October.

The S&P 500 opened at 4,072 and closed at 3,934, lower by 3.4% for the week. The yield on the 10-Year U.S. Treasury ended the week up slightly to 3.58%, while the 2-10 treasury spread decreased slightly from -77bps to -75bps.

Key economic releases next week include CPI, several regional manufacturing reports, retail sales data, as well as a news conference from Fed Chairman Jerome Powell.