WASHINGTON (dpa-AFX) - The markets are reconciling to the dawn of the Trump era, as evident by their stellar run following the elections. The major averages were on fire, with the Dow Industrials rising in 6 out of the 7 sessions post the elections. The Dow Industrials hit a record closing high of 18,923 on Tuesday, although it is currently off this record. The S&P 500 Index and the Nasdaq Composite are also within a hair's breadth of touching their closing records.
Headlining the economic events of the past week was Fed Chair Janet Yellen's testimony before the Congressional Committee, where she asserted that a rate hike may materialize sooner than later. The dollar lapped up the hint and rose to its highest level in about 13-1/2 years.
Most economic data of the week vindicated the Fed's stance. Retail sales rose strongly in October, the start of the fourth quarter, and adding to the positivity, September sales were upwardly revised by 0.4 percent. The data vouched for a strong consumer showing in the fourth quarter, which encompasses the key holiday selling season.
Inflation measures released last week showed a relatively benign pricing environment, with export and import price inflation picking up more than expected in October, although the increase had more to do with petroleum product. At the consumer, pricing pressures were contained, while producer price inflation for final goods saw a let up.
Industrial production report also exuded optimism, with manufacturing output ticking up for the second straight month. Factory sector is picking up its thread, as evidenced by the results of separate October manufacturing surveys by the New York Federal Reserve and the Philadelphia Federal Reserve.
Jobless claims for the recent reporting week unexpectedly fell and housing starts & building permits soared in October, with starts now at their best level since August 2007.
The unfolding week's economic calendar is relatively light, although we do have a rush day on Wednesday, just ahead of the public holiday on Thursday in observance of the Thanksgiving Day.
Here is a list of economic data that traders can keep a tab on, as they weigh in the probability of a December Fed rate hike..
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