Stocks Gained Last Week

Stocks closed higher last week, with the S&P 500 and the Nasdaq reaching record highs. Investors were encouraged by generally favorable fourth-quarter corporate earnings data and a downwardly revised Consumer Price Index for December. Each of the major benchmark indexes gained ground, led by the Russell 2000 and the Nasdaq. Last week saw information technology, communication services, industrials and consumer discretionary lead the market sectors, while utilities and consumer staples trended lower. Crude oil prices continued to rise last week amid ongoing Middle East tensions.

U.S. Trade Deficit Grew in December but Decreased in 2023

The latest data from the Bureau of Economic Analysis shows the December trade deficit was $62.2 billion, up $0.3 billion, or 0.5%, from the November deficit. December exports were $258.2 billion, $3.9 billion, or 1.5%, more than November exports. December imports were $320.4 billion, $4.2 billion, or 1.3%, more than November imports. For 2023, the goods and services deficit was $773.4 billion, a decrease of $177.8 billion, or 18.7%, from 2022. This is the lowest annual trade deficit in three years. Exports increased $35.0 billion, or 1.2%. Imports decreased $142.7 billion, or 3.6%.

Eye on the Week Ahead

January inflation data is available this week with the release of the Consumer Price Index, the Producer Price Index and the report on import and export prices. Consumer prices rose marginally in December, with the CPI increasing 0.3% for the month and 3.4% for the 12 months ended in December. Producer prices, on the other hand, ticked down 0.1% in December and were up only 1.0% for the year.