The Strength of the Market is: Weak
Stocks finished last week higher - the Dow Jones was up nearly 2%, the S&P 500 advanced about 2.5% and the Nasdaq gained 3.3%. Investors, who have been eyeing better-than-expected corporate earnings results, are trying to deliberate whether stocks have finally found a bottom. Still, with concerns over the state of the US economy (i.e. poor manufacturing, housing, labor reports, etc.), the current stock market rally may last a little longer, before coming back down.
Economic reports from last week came negative: •Homebuilder Sentiment - worse than expectation •New Residential Construction - worse than expectation •Existing Home Sales - worse than expectation •Manufacturing (Philadelphia) - worse than expectation •Jobless Claims - worse than expectation This week, investors will look for guidance from economic reports like Economic Activity, Housing, Consumer Confidence & Sentiment, Personal Income, Manufacturing and Jobless Claims.