After a surprisingly strong finish to 2016, the new year is shaping up to be a good one for stocks. The shorter trading week, thanks to the New Year’s Day holiday, brought decent gains to investors. The upcoming week could be more of the same.
Data has turned optimistically bullish in recent weeks as President-elect Trump is expected to deliver on his promises. Investors will get a taste of just how bullish this week will be when we get the consumers, jobs and manufacturing metrics. All of these items have expanded since the election. We’ll also find out whether or not that expansion will continue. (Although, you may want to ignore the election results.)
As for corporate profits, earnings season is once again upon us. By the end of the week, we’ll start to see firms report their quarterly profits. Analysts expect another round of big profits as well as bullish guidance estimations.
In the end, 2016’s bull run could extend into the week ahead, as the economy fires on all cylinders.