Renewed fears of a recession dragged stocks lower and into correction territory. Last week, the Dow Jones was down 2.1%, the S&P 500 was lower by 2.5% and the Nasdaq fell 2.6%. Even with strong economic reports, investors are still expecting the US economy to slow down.
Economic reports from last week came back mixed:
•National Economic Activity - lower than expectation
•New Home Sales - higher than expectation
•Pending Home Sales - higher than expectation
•Personal Income - lower than expectation
•Consumer Sentiment - higher than expectation
•Jobless Claims - higher than expectation
This week, investors will look for guidance from economic reports like Manufacturing, Housing, Consumer Confidence, Employment, Job Openings, Construction Spending, Vehicle Sales, Labor Productivity and Jobless Claims.