Dow Jones, Nasdaq, S&P 500 weekly preview: Goldman sees 'a choppy path for equities' in near term

investing.com:

S&P 500 (SPX) fell 1.3% last week after previously recording two consecutive weekly green candles. Nasdaq Composite Index (IXIC) dropped nearly 2% as investors were adding value amid fears that the Federal Reserve will keep higher interest rates for longer.

Dow Jones Industrial Average (DJI) lost 0.8% with the index now trading below an important diagonal trend line that provided support in the past 11 months.

“Weakness in equity markets last week as interest rates climbed higher is likely to persist near term as bullishness is relatively high while the Fed remains shy of its inflation target,” said analysts at Oppenheimer.

Looking forward to this week, the highlight is the CPI report for August which will be published on Wednesday.

“The headline measure is likely to firm due to the rise in gasoline prices during the summer months. Market attention may focus on the monthly core result, where the consensus is 0.2% mom. Relief here may continue to come from used cars and trucks,” Macquarie analysts wrote in a client note.

Retail sales for August will be published on Thursday. Macquire analysts noted that while core sales were strong in July, the reading may create a headwind for August.

The ECB Governing Council meets on Thursday to decide on monetary policy.

On the earnings front, Oracle (NYSE:ORCL) is due to report later on Monday. Adobe (NASDAQ:ADBE) is also set to report on Thursday, together with Lennar (NYSE:LEN).

What analysts are saying about US stocks

Barclays: “The balance of risk/reward argues against further upside driven by multiple expansion, in our view, and the excessively low ERP makes it a difficult proposition to own equities at these levels from an asset allocation perspective. We think equities are