“We're finding that the data from the U.S. on industrial activity were pretty weak. It's so-so on the consumer although housing activity is still holding up. When you look at Europe, Sweden and Hungary both cut interest rates this week.”
“One reason the futures may be up is because the latest economic data have been a bit softer than expected and that better for the direction of interest rates.”
“There is a little bit of uncertainty about what exactly Mr. Greenspan will say today. Investors want to hear about interest rates. Yes, the economy has shown some signs of suffering recently, but that's countered by other data indicating continued improvement overall. Investors are cautious until they hear more from Greenspan today.”
“The market has been watching oil prices very closely and there appears to be a near-term reprieve. Oil will continue to remain a dominant story with respect to the market.”
“Retail results will also be closely watched. One other factor we're watching related to oil is the effect the high prices could have on consumer spending.”
“There is U.S. existing home sales data out today that is quite key with what's happening with the state of the U.S. consumer. I think the consensus view is that you're still likely to see a great hold up, but if [the data] oppose that view it could have some impact on the markets.”
“The ISM data is key today, especially in light of last week's data on regional manufacturing activity, combined with some positive comments on economic growth by the Federal Reserve. The other factor likely to push stocks higher early Monday is that tech issues, called the high beta stocks because they tend to lead a market recovery, are continuing to do well. That's certainly a plus for the market.”
