The SPDR S&P 500 ETF Trust (NYSE:SPY) ended the week higher as investors digest a series of big tech layoff announcements. 

The Federal Reserve said U.S. economic growth and business activity remain soft in its latest Beige Book report released on Wednesday. The Fed said its business contacts throughout the country "generally expected little growth in the months ahead."

On Wednesday, the Commerce Department reported U.S. retail sales dropped 1.1% on a monthly basis in December, missing economist estimates of a 0.8% decline. Negative retail sales growth is the latest sign Fed interest rate hikes are weighing on consumers and companies.

Communications Breakdown: Telefonaktiebolaget LM Ericsson ADR (NASDAQ:ERIC) shares dropped nearly 10% this week after the Swedish telecommunications company reported a fourth-quarter earnings miss and warned investors to expect margin contraction in the first half of 2023.

Analysts expect S&P 500 companies to report a 3.9% earnings decline in the fourth quarter, the first year-over-year earnings drop since the third quarter of 2020, according to FactSet. 

Economic Numbers: In the wake of the tech layoff announcements, Wall Street will get more key economic updates on Thursday when the Bureau of Economic Analysis releases its preliminary fourth-quarter U.S. GDP growth estimate and on Friday when it releases its December Personal Consumption Expenditures Price Index reading.

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