March 1, 2011
Sheraz Mian
Director of Research
The market shrugged off geopolitical concerns in the last few days, helping February close on a positive note. With oil prices sliding as a result of easing fears about supplies from the Middle East, threats to the U.S. economic growth momentum are coming down.
This broad theme should get further support from a number of critical reports today and the rest of this week, helping the market start the new month positively.
On deck today is Bernanke’s testimony in the Senate, where he will most likely be quizzed about pricing pressures in the economy. Also coming out today is the ISM Manufacturing Index, which has thus far been a stand-out performer in this recovery. Importantly, the index’s employment component reached a multi-year high last month.
The health of the U.S. labor market will be in the spotlight the rest of this week in the build-up to Friday’s nonfarm payroll report for February. After the weather-induced soft report for January, expectations have gone up, with private sector jobs growing almost four times January’s total.
As long as the focus remains on favorable domestic developments, the mood in the market should remain positive.
P.S. What is Zacks Ahead of Wall Street? To find out more about Zacks Ahead of Wall Street, click here.
Zacks Investment Research
