The Week Ahead on Wall Street
The first week of the third quarter will probably be a quiet one as many fund managers, having put the final touches on their portfolios last week, leave on their Fourth of July vacations.
But a few key snapshots of the economy -- notably the Institute for Supply Management's manufacturing and service sector indexes, and the Labor Department's jobs report -- could provide Wall Street with some direction.
On Monday, the ISM's June manufacturing index is expected to come in at 55.5, according to the median estimate of economists surveyed Friday by Thomson Financial, indicating slightly stronger expansion than May's reading of 55.0. The ISM's index of the service sector in June will come out Thursday, and is expected to slip to 58.0 from 59.7 in May.
The market hopes the reports show the economy is still rebounding from its first-quarter slowdown. However, any signs that inflation is accelerating -- such as high readings on the prices paid indexes -- could cause investors to worry about a possible rate hike. On Thursday, the Federal Reserve said although recent data have shown that inflation is moderating, a trend has not been established, so policy makers want to see further signs that costs are under control.
But a few key snapshots of the economy -- notably the Institute for Supply Management's manufacturing and service sector indexes, and the Labor Department's jobs report -- could provide Wall Street with some direction.
On Monday, the ISM's June manufacturing index is expected to come in at 55.5, according to the median estimate of economists surveyed Friday by Thomson Financial, indicating slightly stronger expansion than May's reading of 55.0. The ISM's index of the service sector in June will come out Thursday, and is expected to slip to 58.0 from 59.7 in May.
The market hopes the reports show the economy is still rebounding from its first-quarter slowdown. However, any signs that inflation is accelerating -- such as high readings on the prices paid indexes -- could cause investors to worry about a possible rate hike. On Thursday, the Federal Reserve said although recent data have shown that inflation is moderating, a trend has not been established, so policy makers want to see further signs that costs are under control.
posted by Stock Administrator @ 6:52 PM
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