Philadelphia Fed manufacturing index reading unexpectedly jumped to 26.2 in November and, this week, investors will be eager to see if the manufacturing boom in regional areas continued in December.
While the market waits for key economic data regarding manufacturing and industrial production, the Q4 earnings season continues as three major U.S. banks will release their corporate earnings this week. As usual, Goldman Sachs Group Inc. (GS ) will likely disappoint investors, as analysts are expecting them to report lower earnings compared to last year. Nonetheless, other key players in the financial industry seem to be enjoying the corporate tax cuts as some of the companies are expected to report an over 60% increase in EPS!
To sum up, expect increased volatility after Wednesday, as several economic data will be released at the end of the week. Also, to sustain the bullish momentum from the last two weeks, manufacturing and consumer confidence data need to be rock solid.
Check out last week’s Market Glance here, in which investors welcomed the start of the Q4 earnings season.