Markets are Rebounding but a Bit on Edge

Markets are rebounding following events over the weekend in the Middle East and amidst concerns that tensions in the region could escalate. Into the cash open this Monday, investors are focused on the busy week ahead packed full of earnings and economic data that could move markets. 

Let's begin with earnings because it's going to be a busy week for stocks. Today, attention remains in the financials with results from Goldman Sachs (GS) putting a bid into the stock following an earnings beat. Tomorrow we’ll hear from Bank of America (BAC) and Morgan Stanley (MS). Tuesday, we also have United Airlines (UAL), JB Hunt (JBH), and Johnson & Johnson (JNJ). Wednesday, keep an eye on Discover (DFS), Travelers (TRV), Alcoa (AA), and CSX (CSX). We’ll cap off the week with Nokia (NOK), DR Horton (DRH), Netflix (NFLX), American Express (AXP), and P&G (PG). 

In terms of economic data, today the Retail Sales figures are due out as well as New York Manufacturing Data, Business Inventories, and the Housing Market Index. Tomorrow, Housing Market Starts and Permits, Beige Book, and the Atlanta Fed Business Inflation Expectations will post. To end the week, we’ll be looking out for the Philly Fed data, weekly Jobless Claims, Existing Home Sales, Leading Indicators, and a handful of Fed speakers throughout the week. 

Lastly, keep an eye on gold – last week trading to record highs – and crude oil with attention on the Middle East. The WTI ended the week up around $85, contributing to inflationary pressure and prices at the pump, which have been on the rise. Lastly, the 10-year should be watched as well as we begin the week with yields up around 4.5%.

Charles Schwab and all third parties mentioned are separate and unaffiliated, and are not responsible for one another's policies, services or opinions.