Tense Week on Wall Street Ahead, Attention Turned From First Quarter Growth to Incoming Data

by Tom Carlson | Sunday, Apr 1, 2012 | 291 views

With the best first quarter growth in more than 10 years, analysts and investors are poised to make some key decisions in the coming week. The S&P 500 and the Dow Jones have not seen such first quarter growth since 1998. The Nasdaq has not seen such first quarter growth since 1991. This leaves investors wondering if the great news can continue. With a slew of reports on manufacturing, jobs, and factory growth due in the following week, everyone will be closely monitoring the data released this week.

Good Friday Adds to the Tensity

As if the abundance of economic data coming this week weren’t enough to make decisions tense, Good Friday falls on the coming week. Light trading will be expected on Friday due to the holiday, creating a four-day trading week. This means that most of the heavy trading will be done on Monday after all key reports have been released.

Reports and Data to be Released This Week

A key factor that will affect investor behavior in the following week will be the information released in the March jobs report. Most analysts are expecting an increase of 201,000 jobs. The February job report showed and increase of 227,000 jobs. Economists are expecting the unemployment rate to remain at 8.3%.

Other reports that will be released this week include manufacturing and service industry reports from the Institute of Supply Management, construction spending, factory orders, domestic car sales, and two other labor market reports. In addition, the release of the minutes from the Federal Open Market Committee meeting will be released on Tuesday. The data revealed in these reports will strongly affect the decisions of traders in the following week. For the most part nothing too shaking is expected from these reports. For the most part it is expected that there will be a minor decline in growth all around.

Europe Still on the Radar

In addition to the domestic data to be released this week there are still concerns about the Eurozone. The European Central bank will also be making a decision on Eurozone interest rates on Wednesday; it is expected that interest rates will remain unchanged. However, the unresolved issues in the Eurozone will continue to remain an issue, with potential shocks rippling into the U.S. market. 

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