U.S. stocks appear poised to rebound from the sell off that left the markets 2.5% lower on Friday. Ford added to the positive tone this morning by announcing its first quarterly profit in more than a year, helped by the government stimulus programs. The positive earnings report even overshadowed news of one of the nation’s largest corporate bankruptcies that occurred over the weekend. Small business lender CIT filed for bankruptcy on Sunday as part of a reorganization that was widely anticipated.
Investors will look to a reading on construction spending as well as a report on pending home sales today at 10:00 am ET. Economists generally expect a 0.5% decline in construction spending and a 1.2% rise in home sales. Also at the same time is a survey of nationwide manufacturing activity. The ISM Manufacturing index is expected to show modest growth.
Factory orders and auto sales data are the only report on Tuesday. The FOMC announcement is on Wednesday, along with the ADP Employment report. On Thursday, we will get the weekly jobless claims, non-farm productivity and costs, and a handful of other secondary announcements. We end the week with the Employment Situation report.
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