The economic data heavy week ahead may provide more angst for the investors later this week. Microsoft, a recent addition to the Dow, held the index back by 62 points and knocked 79 points off the Nasdaq. IBM bounced back late in the day by 2 dollars to 106. Goldman Sachs analyst Rick Sherlund downgraded Microsoft to 'market outperformer' from his 'recommended list', and SG Cowen cut its rating on the stock to 'buy' from 'strong buy'. The Economic Calendar this week is packed with market moving data releases.
Tomorrow look for the consumer confidence number and existing home sales.
On Tuesday durable goods orders, and the retail trade numbers are released. Thursday is busy with jobless claims, gross domestic product, employment cost and the M2 money supply data. And on Friday personal income and the Chicago PMI may move the market. Wall Street will be watching all these data closer than usual for evidence that the Federal Reserve's program of interest rate hikes are beginning to take effect or for signs that inflation is accelerating. Either way the market reaction is likely to be emotional given the on edge mental state of many investors.