Stocks Bounce, But Big-Name Investors Aren’t Convinced
This is a heavy week of macro news: Retail sales and manufacturing survey came out before the Monday market open, the PPI and industrial production are out Tuesday, the CPI and housing starts are out Wednesday and jobless claims and leading indicators are out on Thursday.
Retail sales were expected to grow 0.9% over the prior month, but actually grew a better 1.4%, which started fueling the market before the open. Excluding autos and gasoline, though, results were mixed, with the losers concentrated in housing-related sectors (e.g., building materials). The Empire State manufacturing index shows the state of general business conditions in the NY area. Economists expected a 29 reading, but the actual number was a disappointing 23. A reading greater than zero still indicates growth in the manufacturing sector represented by the area, but it was weaker than anticipated. Overall, the results are generally positive, but not as robust as the market perhaps had hoped for. Thursday’s economic data are probably going to be the focal point for the market’s reaction to trends in the underlying fundamentals.