The Pulse on the Economy and Capital Markets: February 13─17, 2023

At a glance

• The markets and economy have investors and business managers scratching their heads, but there are several key takeaways from recent data that can help guide your path forward — especially as we move toward the end of the first quarter.
• Though markets remain higher for the year, many asset classes suffered last week, as investors tried to predict the Fed’s next move on interest rates. Global markets were down, the S&P 500 declined, and the Dow Jones remained flat, although the Nasdaq and Russell 2000 rose higher.
• Fourth-quarter earnings reports are in for 80% of S&P 500 companies, and the results are weaker than investors expected. The good news is that inflationary pressure for many top companies is subsiding, as they place greater focus on protecting customers from price increases and supplier demands.
• Meanwhile, new credit card spending data suggests that times are still tough for consumers, especially those under 40. Amid high inflation, consumers are using credit cards to fund purchases, which is leading to higher credit card debt and delinquency rates on payments.
• In light of these factors, business executives, owners and investors will need to remain agile in the coming months, as they attempt to level-set in the face of uncertainty from the Fed and inflation’s continued impact.
• In terms of industry news, we’re reading about the current state of the housing market (both residential and multifamily real estate), plus trends in construction and international shipping that businesses should know.

Related resources:

• While Concessions Ticked Up in 4Q, Discounts Remain Limited
• The Current State of the Housing Market as of mid-February
• Trade tumult seen in international shipping data
• Pace of construction weakening due to less planning in commercial and industrial sectors