A new week also brings a new trading month. However, investors won’t be able to forget the past, planted firmly with the Federal Reserve. While the Fed ultimately decided to keep benchmark interest rates at zero, for now, its presence will be felt throughout the week.
The reason is that much of the data released will have a big influence on the open Market Committee that deals with interest rates. This week’s data is all about industrial activity. We’ll see the manufacturing activity index, construction activity, factory orders and factory sales data. All of these measures could point to trouble in the economy.
As if that wasn’t enough, the Fed will see several of its high-ranking officials, including Janet Yellen, speak this week. Any wonky “Fed speak” could heighten the volatility.
Also making things wonky will be the continued earnings spree. Guidance will continue to be key for investors.