Stock exchange traded funds rallied Monday and could be volatile this week as markets get several data points on the economy, highlighted by Friday’s nonfarm payrolls report.
SPDR S&P 500 ETF (NYSEArca: SPY) was up nearly 2% to start the week following reports on personal income and spending, and pending home sales. Investors were also relieved Hurricane Irene caused less damage than expected. [ETFs Rally on ‘Attractive’ Valuations, Fed Hopes]
“This week, we will get a much more comprehensive view of the economic damage wrought by the financial storms of August,” said David Kelly, chief market strategist at JP Morgan Funds. “Tuesday’s consumer confidence number for August should be ugly although daily tracking data suggest an improvement in attitudes during the month following a very sharp slide at its start.”
On Tuesday, investors will also digest the minutes from the latest Federal Reserve meeting.
“Wednesday brings the Chicago Purchasing Manager’s Index and both this reading and the national ISM Index, due out on Thursday, should confirm the weakness seen in earlier regional numbers,” Kelly wrote in a weekly outlook Monday. “According to industry analysts last week, vehicle sales appeared to be about flat month-over-month for August. Thursday’s report will tell us whether the hurricane knocked those projections off track.”
Still, this week’s main event is the jobs report expected to cross Friday.