What's Next For The Stock Market After This Week's Hawkish Fed Commentary?

Zinger Key Points
  • At least 179 S&P 500 companies have mentioned the word "recession" on their third-quarter earnings calls, according to FactSet.
  • The Fed will release its November meeting minutes on Wednesday.

The SPDR S&P 500 ETF Trust SPY traded lower on the week as investirs digested mixed retail sector earnings reports and hawkish language from the Federal Reserve.

On Thursday, St. Louis Federal Reserve President James Bullard said interest rates are "not yet in a zone that may be considered sufficiently restrictive."

The Fed raised its target interest rate range to between 3.75% and 4% earlier in November, but Bullard suggested interest rates may ultimately need to rise to between 5% and 7% to bring inflation down closer to the Fed's 2% target.

Related Link: Fed's Bullard Says Rate Hikes Have Had 'Only Limited Effects' on Prices to Date

Amazon.com, Inc. AMZN began the first wave of what is expected to be 10,000 layoffs this week as big tech companies reduce their workforces to cut down on rising costs.

Twitter, Meta Platforms Inc META and Salesforce Inc CRM have also announced layoffs in recent weeks.

On Friday, the National Association of Realtors reported U.S. home sales declined for the ninth consecutive month in October. Sales of previously owned homes dropped 5.9% on a monthly basis, and are now down 28.4% from a year ago.

Related Link: 'More Downside In Housing': Homebuilder Sentiment Drops To Lowest Level In 10 Years

Bank of America downgraded popular cryptocurrency exchange Coinbase Global Inc COIN from Buy to Neutral on Friday, citing concerns over broad crypto market contagion following the bankruptcy of FTX on Nov. 11. The downgrade comes after disgraced former FTX CEO Sam Bankman-Fried tweeted Wednesday that the exchange became "overconfident and careless" and miscalculated its leverage prior to its collapse.

Made In China: On Friday, Chinese e-commerce giant JD.Com Inc JD reported a rebound in revenue growth in the third quarter, and its stock finished the week higher by more than 13%.

In the holiday-shortened week ahead, investors will get more quarterly reports from Zoom Video Communications Inc ZM and Dell Technologies Inc DELL on Monday and HP Inc HPQ and Baidu Inc BIDU on Tuesday.

At least 179 S&P 500 companies have mentioned the word "recession" on their third-quarter earnings calls, according to FactSet.

Economic Numbers: Investors will get key economic updates on Monday when the People's Bank of China releases its latest interest rate decision and on Wednesday when the Federal Reserve releases its November meeting minutes.

Photo via Shutterstock. 

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