Investors Await Revised GDP Figures
Signs this week that the U.S. economy is making a comeback could offer the stock market a pick-me-up with a slew of economic data set for release and a speech on the economy by the nation’s top central banker on tap.
Investors will be awaiting confirmation that the U.S. economy grew faster than previously reported at the end of last year, with revised fourth-quarter gross domestic product data due Thursday.
Earnings news is likely to take a back seat to other issues, although investors will be tuned in for results from retailers Gap Inc., Home Depot Inc., Lowe’s Cos., Target Corp. and Federated Department Stores Inc.
High-speed communications company Global Crossing Ltd., which filed for bankruptcy protection in January and whose accounting practices are under review by federal regulators, also is set to report results this week.
After months of fretting about recession, economists have been scrambling to raise their forecasts for U.S. growth, convinced by signs such as improved retail sales and a narrower trade gap. These signals have raised hopes that the recession that began last March will be short and shallow.
The GDP data, along with reports on personal income and spending, consumer confidence, the manufacturing sector, durable goods, existing and new-home sales and construction spending could underpin stocks, analysts said.
Federal Reserve Chairman Alan Greenspan will grab the spotlight when he gives his twice-yearly testimony on the economy to Congress, speaking before the House Financial Services Committee on Wednesday and later before the Senate Banking Committee.
This week’s schedule of economic data:
Today, the National Assn. of Realtors issues its January report on sales of previously owned homes.
Tuesday, the Conference Board issues its index of consumer confidence for February.
Wednesday, the Commerce Department reports on factory orders for durable goods new-home sales during January.
Thursday, the Commerce Department issues revised figures for GDP from October to December. The report is expected to show a rise of 0.8% to 0.9% annual rate, according to analysts.
A report is expected from Chicago-area purchasing managers on business at factories during January.
Friday, the Commerce Department reports on construction spending during January.
The University of Michigan releases a separate confidence measure for January.
Also, The Institute for Supply Management, formerly known as the National Assn. of Purchasing Management, issues its closely watched manufacturing index for February.
