A week of earnings from nearly every sector, focus on budget talks and data releases including housing, industrial production, manufacturing and leading indicators are likely market movers this week, Prudential’s Chief Market Strategist Quincy Krosby said Monday in her weekly “Connecting the Dots” outlook.
The release of a broad range of earnings reports makes this an important week to learn what companies are seeing in terms of demand for their products here and abroad. It also allows analysts to piece together a broader picture of the global economic landscape, Krosby said.
“This week alone, all the earnings should give us a snapshot of the economic landscape here and overseas,” she said.
The focus on Congress continues as the budget is debated in both houses, Krosby said. A budget must be approved before tax reform can move forward in the legislative process.
Federal Reserve Chair Janet Yellen again telegraphed that a December rate hike remains squarely on the table despite the market’s interpretation of the Fed’s minutes that were released last week. Yellen reiterated that another move in rates is “appropriate,” when she spoke on Sunday in Washington, D.C., Krosby said.
“Janet Yellen clearly wasn’t dovish when she gave her speech,” Krosby said.
The Fed’s Beige Book will be released this week, and while it will include reports from hurricane-damaged areas of the country, investors will be looking to see if economic growth remains on solid footing in the rest of the country, Krosby said.
In data releases this week, there are a host of there are a host of reports including housing, regional manufacturing, industrial production and leading indicators.
To talk to Quincy Krosby about her views of the market, contact Lisa M. Bennett or Dara Scerbo.
Read Quincy Krosby’s full Q4 Market Commentary: The End Game
The views and opinions are those of the author at the time of publication and are subject to change at any time due to market or economic conditions. This is solely for informational purposes. This is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.