Purchasing reports are due out for both the manufacturing and the non-manufacturing sector. This will provide some insight into the state of businesses. Unemployment will be reported next week Friday. This is an important data point to confirm the recent uptake in consumer confidence. Financials, consumer staples and utilities saw strong gains last week.
Investors are still very careful with technology stocks.
Some investors are starting to nibble on the leaders, however, the continued bombardment of earnings warnings and layoff announcements hammers every rally attempt. The communications and semiconductor sectors got decimated again last week. On the plus side we saw all the traditional defensive sectors, like water and electric utilities, life insurance and medical supplies. Investors are getting excited about water treatment companies. Well, that tells you enough about the state of mind of the investment community.