Investors are now creeping into a week marked by stocks trying to reach new highs. The market is characterized by an innate fundamental strength weakened by uncertainty in Washington. Stocks finished relatively flat on May 26. Both Nasdaq Composite Index and the Standard & Poor Index scratching new records moving up by 0.08 percent and 0.03 percent respectively. The DJIA or Dow Jones Industrial Index went a little south, by about 0.01 percent.
The recovery of these stocks coincided with President Trump's maiden trip outside of the United States. There was some speculation that investors will focus on the Russia investigation when he comes to America. In the meantime, a surfeit of economic data will hopefully keep the investors in their toes during a week made short by holidays.
Equities for their part trended a little higher. They recovered from a sharp dip which occurred on May 17. The move southwards was due to reports that US President Donald J. Trump has ordered James Comey, the now former Director of the FBI to close down investigation pertaining to Mike Flynn, the short lived former National Security Adviser.
On May 26, consumer sentiment for the month went up a little as consumers have exhibited more division on expectations of the growth in the economy as per their politics.
According to Brad McMillan of Commonwealth Financial Network, the two-vital data points this week will be the consumer confidence figures and jobs report for May scheduled to be released on June 2. McMillan works as a chief investment officer for his company. A MarketWatch polled consumer confidence reading generated a result of 118.6. This number is lower than April's 120.3. It is expected that 185,000 jobs will be created in May. Another factor of importance are productivity and growth in wages. McMillan opined that the principal focus will be on wage growth. It is not rising as was previously expected.
April saw about 211,000 new jobs being added to the United States economy. Growth in wages, however, stalled to rise only 0.3 percent, much below 2.5 percent average over past 12 months. According to McMillan, the numbers should convey year-over-year recovery. In case this does not happen, there is a real concern that the consumer may not afford to spend. It is seen at present that business investments are now bouncing back, but there is less confidence of consumers spending their money.