Spending, Inflation Reports Vital for Wall Street

February 25, 2008

(Long Island, N.Y.) Wall Street expects a big week coming in as reports out of the Federal Reserve, Department of Commerce and the Labor Department on consumer spending, inflation at manufacturer’s level and home sales numbers are due for release by the middle of the week. These economical figures could distinguish our country sliding into recession or avoiding it.

Market analysts brace for negative numbers as has been the trend in the last two quarterly reports from agencies involved but are nevertheless expectant of a better than expected report due to several concessions made by the government in helping troubled sectors of our economy such as slashing of the interest rates made by the feds last January and the government hatched proposal of a “stimulus package” aimed at helping consumers and small businesses.

By the end of last week, the Dow Jones Industrial gained 0.27 percent from its previous week finish while the Standard and Poor 500 inched up a respectable 0.23 percent. Meanwhile, NASDAQ absorbed a disturbing 0.71 percent loss for the whole week of trading which prompted skepticism among investors to trade.

“Could it fall further? Sure,” said Hans Olsen, chief investment officer in JPMorgan’s private client services and added.“ The Standard and Poor 500 is most vulnerable and has the slight chance of dropping below the 1300 mark which it experienced in a 3-day stretch last January. It is also possible for the stock market to end the year with decent returns, to say we’re hitting a bottom here might be premature.”

Amidst threats of Recession and Inflation, the biggest loser by far has been the housing market. Several factors are involved with the industry’s struggles so far including the high number of properties for sale which triggered a dip of about 1% for the month of January in home sales as with more supply the demand decreases dramatically according to a National Association of Realtors report. Another factor are the struggles in the mortgage industry which are parallel to housing concerns.

Posted by News LI Editor · Edited by Brianna - Filed Under Business