This week, investors eye oil prices, spending data
NEW YORK —
It was some other seesaw week on Wall Street, but it ended with a jolt of good news: a $6-a-barrel tumble in oil. This week, investors will be watching to look if immature extends its drop or bounces back up once more.
Stocks have been moving largely in an opposite lockstep with oil for the past hardly any months. Financial sector developments, of course, can cross the pattern - investors react to practically any report involving such names as Fannie Mae, Freddie Mac or Lehman Brothers Holdings Inc. - but Wall Street has made it clear: It likes when oil prices go astray.
Wall Street has been upbeat about the pullback in efficiency prices because it hopes lower fuel costs will co-operate through lay hold of some pressure off consumers. This week, economists surveyed by Thomson Financial/IFR reckon upon the Commerce Department to report that personal expenditure rose by 0.2 percent but that personal income slipped by the agency of 0.1 percent. They also predict that month-over-month inflation at the personal spending make horizontal will edge up 0.3 percent.
Analysts are split, though, over oil’s next move. Crude ended the week with a big drop, but is appease a few dollars above its recent lows. Meanwhile, the financial sector has been on quite the turbulent ride. Given the mixed bag of economic readings that Wall Street is anticipating, the market’s volatility is not likely to go away this week.
Last week, the Dow Jones industrial average complete down 0.27 percent, the Standard & Poor’s 500 fore-finger ended 0.47 percent lower, and the Nasdaq composite index fell 1.54 percent. The Dow again had several triple-digit point moves.
On Monday, the National Association of Realtors reports on existing pointedly sales for July, and then Tuesday, Standard & Poor’s/Case-Shiller release their June home cost index and the Commerce Department posts its new home sales data for July. Economists expect existing home sales to have risen utmost month, but new home sales to have dipped.
On Tuesday, the Federal Reserve releases minutes from its last meeting, where it kept the key interest rate steady at 2 percent.
On Wednesday, the Commerce Department reports put on durable goods orders, what one. are expected to have risen by 0.1 percent in July.
On Thursday, the department releases its preliminary rendering on second-quarter grievous domestic result. After the disappointing estimate of 1.9 percent finally month, the emporium is anticipating the figure to be revised up to 2.7 percent.
Also Thursday, the Labor Department releases its hebdomadal data steady unemployment benefit claims - a reading that is inner reality increasingly scrutinized as Wall Street tries to find the contents of how sharply the job emporium is deteriorating.
Then in continuance Friday, the University of Michigan issues its final report on August consumer sentiment. Investors are forecasting a modest uptick, given that U.S. gasoline prices have retreated from their July highs.
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