After finishing its third consecutive year of double-digit percentage gains in 2021, the S&P 500 started off 2022 with a down week.
On Friday, the Labor Department reported the U.S. economy added just 199,000 jobs in December, well short of economist estimates of 422,000 jobs. U.S. wages grew 4.7% from a year ago, and the unemployment rate dropped to 3.9%.
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The Federal Reserve released its latest meeting minutes on Wednesday, which suggested the Fed is planning to begin selling off bonds held on its balance sheet sometime after it begins raising interest rates in 2022. The Fed is projecting three interest rate hikes this year, and the bond market is currently pricing in a greater than 70% chance the first rate hike will come in March.
Rising U.S. Treasury yields weighed on tech stocks. The yield on 10-year Treasury notes climbed to 1.79% on Friday, up from 1.5% at the end of 2021 and 1.12% a year ago.
On Monday, Theranos founder and former Silicon Valley billionaire Elizabeth Holmes was found guilty of four out of 11 charges in her criminal fraud trial. Theranos reached a peak valuation of $10 billion in 2013, but the company dissolved in 2018 after failing to deliver on claims it had developed revolutionary blood-testing technology.
Shares of frozen potato product specialist Lamb Weston gained more than 10% last week on the strength of better-than-expected fiscal second-quarter earnings numbers and impressive gross margins amid elevated potato prices.
In the week ahead, fourth-quarter earnings season kicks off with reports from Delta Air Lines on Thursday and big banks JPMorgan, Citigroup and Wells Fargo on Friday.
Analysts are predicting 21.3% S&P 500 earnings growth for the fourth quarter, according to FactSet.
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Following the disappointing December jobs numbers, Wall Street will get more economic updates on Tuesday when Fed Chair Jerome Powell testifies before the Senate Committee on Banking, Housing, and Urban Affairs and on Wednesday when the U.S. Labor Department releases its December Consumer Price Index reading.
Benzinga is a financial news and data company headquartered in Detroit.
This article originally appeared on Detroit Free Press: Theranos founder Elizabeth Holmes found guilty of four charges