WALL ST WEEK AHEAD
INVESTORS will grapple this week with major US economic reports and the looming possibility of a Greek exit from the Eurozone, which is likely to keep dragging on equities for weeks to come.
As contingency plans are made for Greece’s possible departure from the Eurozone, investors may not get a clear picture until Greece holds elections on 17 June. As a result, US economic statistics may grab the spotlight during the holiday-shortened week.
Major releases include consumer confidence, gross domestic product and on Friday the May non-farm payrolls report, which could provide clues on whether the economy is running out of steam or has simply hit a soft patch.
US financial markets will be closed today for the Memorial Day holiday.
Corporate news next week is expected to be light, with the first-quarter earnings season largely in the rear view mirror. Among S&P 500 companies, only government contractor SAIC is scheduled to report this week.
Europe will continue to be closely monitored, with equities affected by any developments in the fiscally troubled region. Increasing worries about the region, coupled with tepid US data, have sent the S&P 500 down more than 5 per cent for May.
Nevertheless stocks rose last week. The Dow Jones industrial average gained 0.7 per cent, the Standard & Poor’s 500 was up 1.7 per cent and the Nasdaq composite index rose 2.1 per cent.
As the Greek elections draw closer, headlines from Europe could unsettle investors.
Belgian Deputy Prime Minister Didier Reynders said it would be a “grave professional error” if central banks and companies were not preparing for a Greek exit from the Eurozone.