The U.S. stock market seems set to move higher at the opening bell today, as a new week on Wall Street begins. Overnight, the markets in Europe have been making progress, and on our shores the S&P 500 Index futures have been displaying strength in early morning trading. This week investors will be following the latest financial news, paying particular attention to the developments across the banking sector. In addition, a number of Federal Reserve officials will be making remarks this week.
In the economic arena, no major reports are scheduled for today. However, tomorrow we will get a look at the Conference Board’s Consumer Confidence Index for the month of March. Here, investors will probably want to see if the higher interest-rate climate has been impacting consumers, especially as credit card debt levels have been rising. In addition, analysts will likely want to know if the recent problems in the banking industry are starting to weigh on consumer sentiment. Later this week, we will get a look at a key measure of inflation. Specifically, the PCE (Personal Consumption Expenditures) Price Index for the month of February will be published.
In corporate news, a few widely held corporations are slated to post profit reports this week. Dow-30 component Walgreens Boots Alliance (WBA), a leading drug store retailer, is set to deliver its results, which will warrant attention. In addition, we will hear from Micron Technology (MU), a major semiconductor manufacturer, as well as Lululemon Athletica (LULU), a popular yoga apparel company.
Technically speaking, the stock market has been putting in a choppy performance lately. However, equities may have found support at this point. For one, the S&P 500 Index has managed to bounce off of the low point reached in early March, which was an encouraging development. In addition, this broad index has moved back above its 200-day moving average (located near the 3,930 mark), which was a plus from a technical vantage point. Nonetheless, the weakness in the financial sector has been of some concern. Over the weekend First Citizens Bank (FCNCA) said it would acquire deposits of defunct Silicon Valley Bank. The problems with banks have been adding to investor uncertainty, and may weigh on sentiment until the situation is further resolved. Elsewhere, investors have been willing to move capital into the technology sector, which has lent support to the market. – Adam Rosner
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.
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