So far, the returns for the new year have been pretty decent. Generally speaking, stocks have continued their march upwards. However, they have also come with a heightened sense of volatility. It seems that we’ve slipped back into the pattern of large swings, both up and down. This pattern should continue through this week as well. Despite being a short week, there is still plenty going on.
On the data front, we’ll get some important inflationary metrics as well as manufacturing and housing data. These data points have been high in recent readings. Depending on investors moods and how they think the Fed will react, strong or weak readings here could send stocks either soaring or falling.
Meanwhile, the start to earnings season is officially upon us. The number of firms reporting profits will jump exponentially this week. Of particular importance is that many of these earnings reports will include forward full-year guidance figures and full-year 2016 profit numbers. Again, we could see heightened volatility in the reports.
All in all, despite only being four trading days, investors could be in for another bullish yet bumpy ride during the week ahead.
Check out last week’s Market Glance here.
