Hot Fun Or Bummer In The Summer?

Tuesday, May 31, 2016

From this point forward, I will be replacing Zacks Director of Research Sheraz Mian for this Ahead of Wall Street feature. Sheraz moves to the soon-to-come Zacks Research Daily, which will showcase each day’s must-read research reports from our analyst team. (More information to come on Zacks Research Daily over the next few days.)

On this final trading day of the month of May, we await a slew of economic data this week, both domestically — from Consumer Confidence today to the big non-farm payroll jobs report on Friday — and globally — from Chinese data throughout the week to the Eurozone PMI Composite Friday. Futures this morning are tepid; with solid data due, traders are likely to sit on their hands even if they are back to work after a long Memorial Day weekend.

At this point, the next big mover of the markets looks to be Janet Yellen’s Fed speech next Monday, after the FOMC has had a chance to review the vast array of information that comes out this week. It’s pretty apparent the committee does want to move forward on a new rate hike (0.25 percent, no more) but remains cautious in the wake of rather noisy, but not catastrophic, global economic developments.

Look no further than this morning’s Personal Income and Spending numbers for April: income up 0.4 percent, as expected. A slight March revision brought it up 0.1 percent to UNCH. Personal spending rose exactly one full percentage point, on strong durables sales (cars). (We also get a comprehensive vehicles sales report tomorrow.)

Chicago PMI, Consumer Confidence are also due out today. The ADP jobs report comes out tomorrow morning, along with EMU, Global, ISM and PMI Manufacturing results. Lots to chew on.

So, will it be Hot Fun in the Summertime or a Bummer in the Summer? This week’s data may go a long way in providing some answers and clearer outlooks.

As opinions shift in the outlooks of the various markets, it’s best to track aggregate impressions of these developments as they’re taking place. The Zacks Rank #1 (Strong Buy) to #5 (Strong Sell) and the Zacks Style Score (Value, Growth, Momentum, or VGM) are excellent meters to utilize changing moods among your most loved (and/or loathed) stocks. Check out your favorite stock’s Quote Page.

Mark Vickery

Senior Editor