Monday, May 28, 2007
Dark Times Ahead?
I'm back from holiday. The major market indices recovered Friday after Thursday's fall, but still remain slightly negative for the week, which is good for us. The Dow added 66.15 points to close at 13,507.28. The SPX tacked on 8.22 points to 1,515.73. We are ok in the green.
News that existing home sales fell 2.6 percent in April actually benefited stocks Friday. On Thursday, a sharp rise in new home sales created concerns about whether the Fed would ease rates anytime soon. Friday’s lower than expected existing home sales data erased these worries. However, the feeling is that existing home prices are going to have to come down in order to clear excess inventory.
Anyway the markets are closed today for Memorial Day so looking ahead for the rest of the week the focus is likely to be on economic data. While the earnings calendar remains light, important economic numbers are due out later in the week. The backend loaded calendar holds key data on consumer confidence, employment, and GDP. Merger and acquisition activity might also drive some of this week’s action.
The week gets off to a slow start with one lone economic stat due out during the first two trading days. A report on Consumer Confidence will be released Tuesday morning. Minutes from the latest Fed meeting might come into focus Wednesday afternoon. The floodgate then opens Thursday morning with data on first quarter Gross Domestic Product (GDP), weekly jobless claims, manufacturing, and construction spending due out early in the day.
Friday might be one of the busiest days of economic news of the year. Reports on consumer sentiment, auto/truck sales, pending home sales, manufacturing, and personal income and spending are due out early in the day. The main focus is likely to be on Friday’s payroll numbers, which will be released one hour before the opening bell. Economists expect to see improvement, with the US economy adding 140,000 new jobs in May and the unemployment rate remaining unchanged at 4.5%. In all, with so much data due out over the course of just two days (along with expectations for strong employment and manufacturing, but weak home prices and economic growth) the net result might be a bit of confusion and volatility in the marketplace.
Let see.
Until next time.
News that existing home sales fell 2.6 percent in April actually benefited stocks Friday. On Thursday, a sharp rise in new home sales created concerns about whether the Fed would ease rates anytime soon. Friday’s lower than expected existing home sales data erased these worries. However, the feeling is that existing home prices are going to have to come down in order to clear excess inventory.
Anyway the markets are closed today for Memorial Day so looking ahead for the rest of the week the focus is likely to be on economic data. While the earnings calendar remains light, important economic numbers are due out later in the week. The backend loaded calendar holds key data on consumer confidence, employment, and GDP. Merger and acquisition activity might also drive some of this week’s action.
The week gets off to a slow start with one lone economic stat due out during the first two trading days. A report on Consumer Confidence will be released Tuesday morning. Minutes from the latest Fed meeting might come into focus Wednesday afternoon. The floodgate then opens Thursday morning with data on first quarter Gross Domestic Product (GDP), weekly jobless claims, manufacturing, and construction spending due out early in the day.
Friday might be one of the busiest days of economic news of the year. Reports on consumer sentiment, auto/truck sales, pending home sales, manufacturing, and personal income and spending are due out early in the day. The main focus is likely to be on Friday’s payroll numbers, which will be released one hour before the opening bell. Economists expect to see improvement, with the US economy adding 140,000 new jobs in May and the unemployment rate remaining unchanged at 4.5%. In all, with so much data due out over the course of just two days (along with expectations for strong employment and manufacturing, but weak home prices and economic growth) the net result might be a bit of confusion and volatility in the marketplace.
Let see.
Until next time.
# posted by Paul @ 6:40 AM 
