The first full trading week of the new month will bring plenty of opportunities for investors. The last few sessions have resumed stocks’ general upward trend – albeit, the grind has not always been in a straight line. The Trump Bump has hit a few snags here and there, and those obstacles could make themselves known again as not much going on this week for the markets.
Data will be very light, with only a handful of metrics being released. However, what is being released is quite important. Key measures of labor health and inflation will take center stage, and both will factor into the Fed’s decisions on interest rates later this year.
As for earnings, the so-called profit season is pretty much over. Almost all the major bellwethers have reported, and this week will feature mostly smaller firms and those with no major pull on the market.
With this in mind, politics and D.C. will be in the driver’s seat when it comes to the overall direction of stocks.