After last week’s Fed- and China-induced malaise, investors this week might actually see a new direction. Unfortunately, that direction could be down. Investors will be treated to a plethora of important economic data and earnings releases this week. And if the previous week’s trend continues, that could be less than perfect for the markets’ returns.
The data will focus on the industrial complex. Traders will see various local manufacturing indexes released, as well as national industrial production measures. Housing-related and construction data will also be released; as will Fed-watching measures of inflation. Any of these data points could spell trouble for traders and investors over the week.
Earnings could also create some hiccups. The season is officially underway and the number of reports will pick up this week. If the released reports follow the trend of profit beats with revenue and guidance misses, we could be setting ourselves up for another disappointing week and quarter of earnings.
And let’s not forget that the international situation has started to deteriorate, with data out of China and Europe beginning to weaken again.