Fed raised interest rates by 50 basis points
Last week started off on a positive momentum as November inflation data came in cooler than expected. However, Fed Chair Jerome Powell’s remark after the rate hike announcement sent the momentum south.
He reiterated that the central bank would continue to raise interest rates until inflation is tamed. All the sectors saw a widespread sell-off, except for the energy sector which managed to finish higher last week on the back of a rebound in oil prices.
Top stories from last week
- Boeing (BA) received an order for one hundred 787 Dreamliners from United (UAL) with an option to buy 100 more – the largest order in U.S. aviation history. The totality of the deal is roughly $43 billion.
- Oracle (ORCL) beat analysts expectations due to strong revenue growth from its cloud business and positive synergies from its recent acquisition of Cerner.
- Amgen (AMGN) agreed to buy Horizon Therapeutics (HZNP) for $27.8 billion. Horizon shares finished the week up 16%.
- Moderna (MRNA) shares rallied over 24% Tuesday on news that their experimental melanoma vaccine combined with Merck’s (MRK) Keytruda cut the risk of death by 44%.
The week ahead
- Earnings this week: FedEx (FDX), Nike (NKE), General Mills (GIS), Micron (MU)
- Economic data this week: Consumer Confidence Index, Jobless Claims, PCE Price Index, Consumer Spending
- This week is expected to be a rather slow one ahead of the Christmas holiday, which is to be observed on Monday, December 26.
Stock watchlist for this week
*Consensus rating and average price target as per Tipranks data.