Wall Street Likely to Remain Volatile This Week
The Empire Statement manufacturing index being released on Monday will reveal if the trend of contracted manufacturing activity has continued. Urban Outfitters and Lowe’s will start the ball rolling as retailers report second quarter results and forecasts in the coming week. Tuesday sees reports from Wal-Mart and Home Depot, as well as from PC maker Dell. Tuesday’s economic reports include July housing starts and building permits, as well as the Fed’s industrial production figures for July.
Retail chain, Target, will be reporting on Wednesday, as will Deere – manufacturer and distributor of farming equipment. The Labor Department is set to release its inflation indicating producer price index for July, which is expected to remain flat. Weekly jobless claims and the Labor Department’s consumer price index are due on Thursday. Stock market listed companies reporting on Thursday include Hewlett Packard, Gap, Sears Holding, and GameStop. No market-moving reports are due on Friday.
While Wall Street investors will mainly be focused on the state of the US economy, the head of the World Bank, Robert Zoellick, is concerned that many influential market participants have lost confidence the economic leadership of some countries, presenting the scenario where the global economy may be pushed into what he termed as a ‘new danger zone’ – a situation that is likely to impact on investors everywhere.