Stocks were nearly unchanged for the week as the S&P 500 slipped 0.06% to 2,258 and the Dow Jones Industrial Average climbed 0.44% to 19,843. Ending the week at 102.86, the US Dollar Index touched a new 14-year high, while Crude Oil was up 2.82% to $52.95 per barrel.
Announced on Wednesday, the Federal Open Market Committee (FOMC) hiked the federal funds rate to a target range of 1/2 to 3/4 percent. The 10-year Treasury yield jumped to 2.59% as bonds sold off. Expectations are for three rates hikes throughout 2017.
It was a busy week for US economic data. On Wednesday, PPI showed signs that demand is picking up as the index rose 0.4% in November, Retail Sales displayed marginal gains, up 0.1% for the month, and Industrial Production fell 0.4% as unseasonably warm weather pushed utility output lower. Next, on Thursday, CPI rose 0.2%, with the year-on-year rate up to 1.7% showing inflation at the consumer level is still low, and the Housing Market index was up a very sharp 7 points for the December reading to 70, which is a new high for the expansion cycle.
Many companies, specifically large industrials, presented their 2017 outlook for investors. General Electric (GE) stated that they were the most optimistic on the US Economy in a long time, while United Technologies (UTX) and Honeywell (HON) were a bit more conservative with their forecasts.
Adobe (ADBE), Nordson (NDSN), and Oracle (ORCL) released quarterly results. Adobe beat on the top and bottom, reaffirmed 2017 EPS guidance, and slightly lowered 2017 revenue expectations. Nordson easily surpassed estimates and guided higher, sending the stock to new highs, while Oracle could not entirely please the investment community with its in-line results.
Next week, investors will look at new data pertaining to the housing market, GDP, and Personal Income.