Week of March 6, 2023

All major US indices managed to close positive for the week.  The Dow Jones Industrial Average, S&P 500 and Nasdaq closed 1.85%, 1.96% and 2.58% respectively.  However, the major indices closed out the month of February in the red with the Dow Jones Industrial Average down 3.94%, the S&P 500 2.44% and the Nasdaq 1.11%.

Treasury yields hit a high on Tuesday, reaching 4% on the 10 year at one point, and closed the week at 3.97%.  Yields continue to rise as investors try to anticipate the Federal Reserve’s plans for interest rates.  On Wednesday, Minneapolis Fed President Neel Kashkari said, "I’m open-minded about whether it's 25 or 50 basis points [at the next meeting]." The Atlanta Fed President Raphael Bostic indicated he believes the Fed needs to raise its policy rate to a range of 5%-5.25% well into 2024.

In earnings news, SalesForce stock rallied 16% after beating expectations of $1.36 per share, reporting $1.68 per share and revenue was reported at $8.38 billion, versus $7.99 billion expected.

On Wednesday, the Senate passed a measure to overturn a Department of Labor rule that allows fiduciaries of retirement plans to take into consideration environmental, social, and corporate governance factors when considering available investments.  The measure is likely to be vetoed by the President.

This week, Federal Reserve Chairman Jerome Powell will address congress giving the US more clarity on the central banks plans for continued interest rate increases and their outlook on inflation.  The jobs report will be released Friday, with expectations at 225,000 jobs added for the month of February.