Stock markets tumbled on Friday to close a rollercoaster of a week on a down note. The end-of-the-week declines were sparked by underwhelming earnings results at the largest U.S. banks, as well as rising geopolitical tensions and ongoing concerns over the Federal Reserve’s monetary policy outlook.
This week, markets will focus on earnings, with this week’s releases spread between various economic sectors. This week should therefore provide a somewhat better outlook into the season than the results from the large banks. In addition, the Middle East conflict continues to draw attention, as increased tensions threaten to add to the upward pressure on oil prices. Crude has rallied over 20% this year, with the surge feeding into prices at the pump and overall inflation, putting further strains on consumers.
Investors will also closely monitor the incoming economic data, including retail sales and industrial production, for additional data that could affect the Federal Reserve’s monetary policy. Following recent hotter-than-expected inflation figures, further signs of the economy’s strength would add to growing concerns that the Fed may leave its rates unchanged this year.
Three Economic Events
Here are three economic events that could affect your portfolio this week. For a full listing of additional economic events, check out the TipRanks Economic Calendar.
» March’s Retail Sales – Monday, 04/15 – This report provides information on the amount of money consumers are spending on various durable and non-durable goods. It helps to gauge the economy’s health and consumer spending habits, as well as the level of the demand-side inflation pressures.
» March’s Industrial Production – Tuesday, 04/16 – This report shows the volume of production of U.S. industries like manufacturing, mining, and utilities. Although industrial production accounts for a smaller portion of the economic activity than services, its sensitivity to consumer demand and interest rates makes it a leading indicator of GDP growth and economic performance.
» March’s Existing Home Sales Change – Thursday, 04/18 – This report measures the sales volumes and prices of existing single-family homes, condos, and co-ops nationwide. Existing homes account for over 90% of total home sales in the country, so this report provides insights into the health of the housing market which has significant implications for economic activity throughout the U.S.
For more exclusive market insights and content from TipRanks Macro & Markets research analyst Yulia Vaiman, click here.
