Last week’s tale could be titled “uncertainty.” Thanks in part to the presidential election and Trump’s unexpected win, the markets managed to see their largest intraday swings in quite a while. The problem is that investors may not get a real break this upcoming week. Mid-month means important pieces of economic data. (Check out last week’s Market Glance here.)
Overall, the amount of economic data will be light. However, what will be released will be very important – key measures of inflation, consumer health and industrial activity. All of these numbers will go into the Fed’s latest forecast and decisions on interest rates.
As for earnings, the week will be light as well. Earnings season is coming to a close, so the number of reporting firms is starting to decrease. However, like the week’s data, the firms that are reporting are important bellwethers. So, the markets could move on their reports.
And let’s not forget that any of the uncertainty from the election could continue to spill over as investors continue to digest just what Trump’s policies will be.