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Weekly Recap | November 21, 2022

Weekly Recap | November 21, 2022

November 22, 2022
Weekly Recap

November 14-18, 2022 Recap

Stocks Slip Last Week

Trimming November Gains
U.S. stocks retreated modestly last week, trimming solid month-to-date (MTD) gains spurred by lighter than expected inflation data that had ignited hopes the Federal Reserve may temper its aggressive monetary tightening posture. Those hopes faded after retail sales came in a bit higher than projected and hawkish comments from a pair of regional Fed Bank presidents.

For the Week…
The S&P 500 fell 0.61%, the Dow Jones Industrial Average slipped just 0.01% and the tech-heavy Nasdaq Composite retreated 1.51%. The S&P 500 trimmed its November MTD gain to 2.56% and its quarter-to-date gain to 10.86%.

Wholesale Inflation Moderates
The producer price index (PPI) rose at a slower-than-expected pace last month, rising +0.2% vs +0.5% expected. On a Y/Y basis, PPI inflation decelerated to 8.0% in October, the slowest pace since July 2021 (+8.3% projected). Input costs have seen a trend reversal since the middle of the year.

Defensive urges
Eight of the 11 S&P 500 sectors ended negative last week, with Consumer Discretionary (-3.11%), Energy (-1.85%), and Real Estate
(-1.76%) down the most, trimming prior week gains. Communication Services (-0.08%) fell the least, while the three primary defensive groups posted gains including Consumer Staples (+1.73%), Utilities (+1.08%), and Healthcare (+1.03%).

Treasury Yields Mostly Steady
The yield on benchmark 10-year U.S. Treasury notes slipped to end the week at 3.813%, little changed from 3.817% the week prior.

The Latest from @CeteraIM

Leading Indicators Drop

Double Digit Quarter-to-Date

Retail Sales Top Forecasts

Economic Calendar

Monday, November 21
Chicago Fed National Activity Index.

Tuesday, November 22
No Major Releases.

Wednesday, November 23
Mortgage Activity, Jobless Claims, Durable Goods Orders, S&P Global US Mfg & Services PMIs, Consumer Sentiment, New Home Sales, FOMC Minutes.

Thursday, November 24
Thanksgiving Day Holiday, All Markets Closed.

Friday, November 25
No Major Releases.
Early Market Closes: Equities @ 1 pm ET; Fixed-Income @ 2 pm ET.

Supply chain issues in the auto sector might be in the rearview mirror. U.S. auto assemblies rose to 10.73 million annualized last month, slightly above the monthly average in 2019. Rising auto production will help alleviate auto supply issues that have driven car prices higher.

This report is created by Cetera Investment Management LLC. For more insights and information from the team, follow @CeteraIM on Twitter.

About Cetera® Investment Management
Cetera Investment Management LLC is an SEC registered investment adviser owned by Cetera Financial Group®. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.

About Cetera Financial Group
“Cetera Financial Group” refers to the network of independent retail firms encompassing, among others, Cetera Advisors LLC, Cetera Advisor Networks LLC, Cetera Investment Services LLC (marketed as Cetera Financial Institutions or Cetera Investors), Cetera Financial Specialists LLC, and First Allied Securities, Inc. All firms are members FINRA / SIPC. Located at 655 W. Broadway, 11th Floor, San Diego, CA  92101.

Disclosures
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Glossary

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.

The S&P 500 is an index of 500 stocks chosen for market size, liquidity and industry grouping (among other factors) designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.

The NASDAQ Composite Index includes all domestic and international based common type stocks listed on The NASDAQ Stock Market. The NASDAQ Composite Index is a broad based index

The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe and is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.

The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe and is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership.

The Bloomberg US Aggregate Bond Index, which was originally called the Lehman Aggregate Bond Index, is a broad based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government–related and corporate debt securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency) debt securities that are rated at least Baa3 by Moody’s and BBB- by S&P. Taxable municipals, including Build America bonds and a small amount of foreign bonds traded in U.S. markets are also included. Eligible bonds must have at least one year until final maturity, but in practice the index holdings have a fluctuating average life of around 8.25 years.

The Bloomberg US Corporate High Yield Index measures the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch, and S&P is Ba1/BB+/BB+ or below, excluding emerging market debt. Payment-in-kind and bonds with predetermined step-up coupon provisions are also included. Eligible securities must have at least one year until final maturity, but in practice the index holdings has a fluctuating average life of around 6.3 years.

The Bloomberg US Municipal Bond Index covers the USD-denominated long-term tax exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. Eligible securities must be rated investment grade (Baa3/BBB- or higher) by Moody’s and S&P and have at least one year until final maturity.

The MSCI EAFE Index is designed to measure the equity market performance of developed markets (Europe, Australasia, Far East) excluding the U.S. and Canada. The Index is market-capitalization weighted.

The MSCI Emerging Markets Index is designed to measure equity market performance in global emerging markets. It is a float-adjusted market capitalization index.

The Bloomberg Commodity Index is a broadly diversified index that measures 22 exchange-traded futures on physical commodities in five groups (energy, agriculture, industrial metals, precious metals, and livestock), which are weighted to account for economic significance and market liquidity. No single commodity can comprise less than 2% or more than 15% of the index; and no group can represent more than 33% of the index.

The S&P GSCI Crude Oil Index is a sub-index of the S&P GSCI, provides investors with a reliable and publicly available benchmark for investment performance in the crude oil market.

The S&P GSCI Gold Index, a sub-index of the S&P GSCI, provides investors with a reliable and publicly available benchmark tracking the COMEX gold futures market.

The U.S. Dollar Index is a weighted geometric mean that provides a value measure of the United States dollar relative to a basket of major foreign currencies. The index, often carrying a USDX or DXY moniker, started in March 1973, beginning with a value of the U.S. Dollar Index at 100.000.