This week was all about three little letters: F.E.D. Once again, the Federal Reserve and its pending rate decision seemed to drive the markets. After the last few meetings, when the Fed kept benchmark interest rates at zero, investors and traders have been increasingly on edge each time the Fed goes to speak. While the Fed didn’t have as much effect on the markets as previous meetings did, it still was a pervasive force on trading activity.
As was the plethora of earnings this week. Earnings season is alive and kicking. So far, results have been mixed and guidance has been less than stellar. Any firm that has reported less than ideal guidance has been taking to woodshed. This has added to the week’s Fed-induced volatility.
Also adding to the fray was the number of important data points coming this week. Consumer confidence, GDP numbers, personal spending, and personal income were all released this week, and all were less than star studded.