1. Market’s next move not clear
After a couple of volatile weeks on Wall Street, analysts are mixed about where the stock market goes from here. Some see another buying spree, fueled by cheap stock prices and companies flush with cash. “This is a good opportunity for strategic takeovers,” said Quincy Krosby of Hartford Financial Services Group. Hugh Moore at Greenville, S.C.-based Guerite Advisors isn’t as optimistic. “Even if the Fed were to cut rates today,” he said, “it is still closing the barn door after the horses have already gotten out.”
2. Economic reports due
A slew of economic reports is expected this week, led by the closely watched producer price index for July on Tuesday and the consumer price index for last month on Wednesday. Economists are looking for a 0.2 percent gain in both core indexes, which strip out costs for energy and food. Other reports scheduled to be released include July retail sales on Monday, the June trade deficit on Tuesday and July industrial production on Wednesday.
3. Retail earnings watch
Earnings season is pretty much over except for one major group: the nation’s retailers. Wal-Mart Stores Inc. is to report quarterly results Tuesday, followed by Macy’s Inc. on Wednesday and J.C. Penney Co., Kohl’s Corp. and Nordstrom Inc. on Thursday. Investors will be watching to see if consumers kept a tight grip on their wallets.
4. Housing remains bleak
Housing starts for July are due out Thursday, and forecasts call for more bad news for the sector. Recent reports on mortgage applications and signed purchase agreements provided some optimism, but economists are expecting a dip of about 6 percent in July starts, to an annual pace of 1.38 million.
5. Oil price easing
The price of oil is expected to fall this week because, economists say, losses in the subprime mortgage market and declining stock prices could hamper consumer spending, slow the economy and cut the demand for fuel. Oil ended last week at $71.47 a barrel.
