While it may have been an uneventful week for markets, it was an important one. On the heels of a slew of (decent) earnings reports, major stock indexes stabilized and ended within arms-reach of their all-time highs. Speculation that the U.S. Federal Reserve would hold interest rates steady at this week’s meeting became almost unanimous. And while we agree that the Fed is unlikely to raise rates this go around, we believe that the risks are in what Chairwoman Yellen says, not what the committee does. So far, Dr. Yellen has been on the Dovish side, a trend that is sure to end at some point.
Index futures as well as major international bourses are down slightly on Monday morning, as investors digest recent political events relating to President Obama’s European tour, the failed Doha accord and threats by Saudi Arabia relating American’s ability to sue foreign governments for damages due to terrorist related damages. More significantly, there are a slew of earnings reports and economic data on tap for the week, not least of which is the long-awaited April Fed meetings scheduled for Tuesday and Wednesday of this week. Markets are likely to remain range bound until the Fed’s press conference on Wednesday afternoon or Thursday’s release of revised Q1 GDP data.
This Week’s Market Moving Events:
Monday: New Home Sales, Dallas Fed Manufacturing Index
Tuesday: Durable Goods Orders, Case Shiller Home Price Index, Richmond Fed Manufacturing Index
Wednesday: International Trade data, FOMC Meeting Minutes and Press Conference
Thursday: GDP, Jobless Claims, Kansas City Manufacturing Index
Friday: Employment Cost Index, Chicago PMI, Consumer Confidence