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Weekly Recap | December 13, 2021

Weekly Recap | December 13, 2021

| December 14, 2021
Weekly Recap

December 6-10, 2021 Recap

Strong Weekly Gains

S&P 500 Finishes at New Record
The S&P 500 closed out a strong week at a new all-time high as investors shrugged off November’s hot consumer inflation report that was largely in line with economists’ forecasts. Fearing a hotter inflationary surprise, investors found a bullish relief following a selloff triggered by uncertainty associated with the omicron COVID-19 variant.

For the Week…
The S&P 500 jumped 3.85%, the Dow Industrials surged 4.02% and the tech-heavy Nasdaq Composite gained 3.62%. The Dow snapped a four-week losing streak and the S&P 500 and Nasdaq Composite posted their strongest weekly gains since early February.

Highest Inflation in 39 Years
The headline Consumer Price Index (CPI) for November rose 0.8% (0.7% expected) and is up 6.8% from a year ago (highest since 1982) from 6.2% in October. The core CPI (excluding volatile food and energy) rose a lesser 0.5%, matching estimates and is up 4.9% YoY.

Technology Surges Nearly 6%
All 11 major sector groups posted gains of 2.5% or more, with Technology (+5.99%), Energy (+3.79%) and Consumer Staples (+3.60%) gaining the most. Financials (+2.67%), Utilities (+2.63%) and Consumer Discretionary rose the least. 

Treasury Yields Rebound
Treasury prices eased last week as omicron fears subsided, fueling a yield rebound. The yield on benchmark 10-year Treasury notes climbed over 14 basis points (0.146%) to end Friday at 1.486%. The U.S. Dollar Index weakened 0.02% last week, technically breaking a six-week strengthening trend. U.S. WTI crude oil futures jumped nearly 8% to end the week at $71.67/barrel.

The Latest from @CeteraIM

Recovery Remains Supportive

Jobless Claims at 52-Year Low

Interest Rate Outlook

Economic Calendar

Monday, December 13
No Major Releases.

Tuesday, December 14
Small Business Optimism, Producer Prices.

Wednesday, December 15
Mortgage Activity, Retail Sales, Empire State Manufacturing, Import/Export Prices, FOMC Rate & Policy Decisions.

Thursday, December 16
Jobless Claims, Housing Starts & Permits, Philly Fed Manufacturing, Industrial Production, IHS Markit US Manufacturing/Services PMIs.

Friday, December 17
No Major Releases.

Labor demand remains robust. There were more than 11 million job openings in October, far exceeding the total number of unemployed individuals seeking employment (6.9 million). Manufacturing job openings reached one million for the first time in this data series history (since 2001). The shift in consumer behavior since the start of the pandemic has driven the demand for goods higher, lifting the demand for manufacturing labor.

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 200 N. Pacific Coast Highway, Suite 1200 El Segundo, CA 90245-5670

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No independent analysis has been performed and the material should not be construed as investment advice. Investment decisions should not be based on this material since the information contained here is a singular update, and prudent investment decisions require the analysis of a much broader collection of facts and context. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The opinions expressed are as of the date published and may change without notice. Any forward-looking statements are based on assumptions, may not materialize, and are subject to revision.

All economic and performance information is historical and not indicative of future results. Investors cannot directly invest in unmanaged indices. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability, and differences in accounting standards.


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 Barclays 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 Barclays 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 Barclays 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.

The Chicago Board Options Exchange (CBOE) Volatility Index is a measure of the stock market's expectation of volatility implied by S&P 500 index options.