Three months and Wall Street’s advance might has gone mired. Even with the recession bottoming out, the market isn’t seeing any concrete evidence of growth to spur on a rebound. Most traders have gone into a more conservative mode.
The market, however, expects this coming week of trading will start refueling the tank to gain some more. Data from reports on housing, consumer spending and goods are expected to help.
The Fed is also scheduled to meet regarding policy this week. Banks’ short-term interest rates are not expected to change though.
“The big rally since March correctly anticipated the change in the economic data from free fall to stabilization, but now it feels like the stock market is in a bit of a lull,” said Bob Baur, chief global economist at Principal Global Investors.
Consumer spending will be one of the key factors to this week’s trading. With mortgage rates on the rise, oil prices and unemployment at highs, consumers might curb spending and that would have a clear effect on the market’s advance.
Source: CNN
