In a holiday-shortened trading week, there is still important data for the market to digest, including the index of leading economic indicators, existing home sales, durable goods orders and minutes from the latest Federal Reserve meeting, Prudential’s Chief Market Strategist Quincy Krosby said Monday in her weekly “Connecting the Dots” outlook.
All eyes are on the consumer as we begin the holiday spending season. The tax reform process continues to dominate headlines, but perhaps takes a break for Thanksgiving.
Volume slows down considerably this week as trading desks typically go quiet, Krosby said. That leaves open the possibility of markets across all assets being skewed in one direction or another as they respond to market-moving headlines.
Despite the calendar, there are important data releases for the market to absorb as well as important earnings reports. The guidance stemming from the Dollar Tree, salesforce.com, Lowe’s and John Deere earnings calls should shed light on consumer spending and construction spending, she said.
“Of course, Friday is the day in which many retailers—who have been under so much pressure—will go into the black,” Krosby said. “Americans will stand overnight if need be for those must-have items.”
The tax reform process, which has so dominated headlines and market moves, should be quiet this week as Congress is in recess. That said, any comments—negative or positive—that hit the headlines, particularly from the Senate side, could have a major effect on markets.
This week’s important data releases:
- Monday: Leading index of economic indicators
- Tuesday: Existing home sales
- Wednesday: Durable goods orders; University of Michigan consumer sentiment; Federal Open Market Committee minutes
- Friday: Markit Economics’ flash manufacturing and non-manufacturing Purchasing Managers Index
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.