US & Global Economies Still Under Spotlight
The fate of the euro is currently the subject of intense interest. Once touted as a worthy replacement of the US$ for international trade, the euro has been taking a beating spurred on by the economic woes of Eurozone countries Greece, Spain, Portugal and Italy. Nevertheless, a recent survey revealed that many top economists have confidence that the euro will survive without ousting any Eurozone members, mainly because France and Germany will not allow it to fail, although fears of increasing dissatisfaction at austerity measures being implemented appear to be warranted, as are fears that the European banking sector may fall apart.
As Europe continues to play a significant role in market movement, the week ahead on Wall Street includes the latest ISM manufacturing index, and Commerce Department construction spending figures on Monday. It is anticipated that the ISM index will fall from last month’s 50.6 to 50.5, with construction spending expected to drop 0.5 percent. Also on Monday, automakers will report September’s sales. Tuesday morning, Federal Reserve Chairman Ben Bernanke will address the Joint Economic Committee of Congress on the economy’s outlook. Earning reports are due from KFC owners YUM!, Taco Bell and Pizza Hut. Speculation is rife that Apple will be presenting its much-touted iPhone 5 at an afternoon event.
Wednesday sees the release of the ADP private employment report which economists expect a figure of 48,000 workers being hired in the private sector for September. Costco, Monsanto, and Marriott will be reporting quarterly earnings on Wednesday. As usual, the Labor Department will release weekly initial jobless claims data on Thursday, with analysts anticipating an increase from 391,000 to 401,000 since last week. The week draws to an end with the Labor Department’s jobs report for August.