Santa Claus experienced a bit of turbulence in the week leading up to the Christmas holiday but he was able to guide the market up to a new all-time high. The broad market S&P 500 was able to creep up and set a new high on Friday despite weakness in both the blue-chip Dow Jones Industrials and tech-heavy NASDAQ Composite.?

The biggest news investors missed last week was the monthly reading of income and spending data. The data shows spending and incomes are on the rise but also a much-hotter than expected increase in inflation. Core inflation accelerated more than expected in November leaving the PCE Price index at the highest level in decades. With the FOMC already moving the timeline for rate hikes forward this news will surely force the committee to do so again.