Investors are growing more hopeful that lawmakers will reach a deal to raise the U.S. debt ceiling. Last week, the Nasdaq rose 2.5%, notching its fifth straight weekly gain, and the S&P 500 advanced 0.3%. The Dow was the laggard last week, losing 1.0%. Debt ceiling negotiations seem to be making progress with a default coming as soon as next week, if the debt ceiling is not raised, possibly creating a devastating impact on the economy.
Economic reports from last week came back mixed: •Manufacturing (Richmond) - lower than expectation •New Home Sales - higher than expectation •Pending Home Sales - lower than expectation •Personal Income - in-line with expectation •Consumer Sentiment - higher than expectation •Jobless Claims - lower than expectation In a holiday-shortened week, investors will look for guidance from economic reports like Manufacturing, Housing, Consumer Confidence, Job Openings, Construction Spending, Employment, Productivity, Vehicle Sales and Jobless Claims.