Wall Street could fall this week in a market upturn phase, but will require a new set of quarterly results convincing to feed the stock market rally that started in U.S. last weekend.
The markets have been digesting macroeconomic statistics found disappointing and pessimistic comments from Federal Reserve Chairman Ben Bernanke on the U.S. economy, but the announcement of strong quarterly results by companies suggest a brighter future.
But this week, others are expected quarterly publications such as the oil company Chevron, DuPont chemist or the aircraft manufacturer Boeing.Good news would reassure investors.
Investors have had to readjust their forecasts for the economy with the latest statistics that portend a slowdown in the pace of recovery.
These data have also created divisions in the markets about the possibility of a new recession.If the concerns of a return to "W" began to fade among investors, publications positive would result in rising markets.
FIGURES OF THE GROWTH EXPECTED
"All indicators continue to signal growth, simply we are not moving as quickly as when we came out of the recession, which is totally logical," said Michael O'Rourke, chief market strategist at BTIG LLC, adding that the downward phase of the contract is completed.
He considers in particular that the beginning of July should be the low point of annual contracts.
Analysts hope to cheer the quarterly results this week after figures better than expected and forecast annual improvements announced last week by industry groups.
But the economy remains crucial. The series of publications macroeconomic expected this week will also be particularly monitored to determine the strength of the U.S. economic recovery.
The Fed should publish its Beige Book Wednesday on the economic conditions, while the figures for new home sales will launch the week Monday.
On Tuesday, it is the Standard & Poor's / Case Schiller home prices and consumer confidence, which will be followed, before investors only look the next day on orders of durable goods.
But it was the day Friday with the first estimate of gross domestic product (GDP) U.S. second quarter to be expected this week.
