The S&P 500 (SPX) index rose for the fourth straight week, closing at an all-time high for the third consecutive week and inching less than 1% from crossing the 5,000 level for the first time in its history. All major indexes clocked a winning week, as blockbuster updates from Meta Platforms (META) and Amazon (AMZN) overshadowed weakness in Apple (AAPL) shares.
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Economic reports also boosted indexes, coming in stronger-than-expected across the board. Notably, robust payroll growth and accelerating wage increases provided another argument in support of the “Goldilocks economy” thesis. Meanwhile, increased worker productivity suggested that faster job growth may be possible without stoking inflation.
This week will be relatively light on economic data, which will allow investors to digest the details of the economic reports already published and concentrate on earnings releases. In addition, several Federal Reserve members are scheduled to speak this week, with investors digging into their speeches in search of additional clues regarding their monetary policy outlook.
Here are three economic events that could affect your portfolio this week. For a full listing of all upcoming economic events, check out the TipRanks Economic Calendar.
» January’s ISM Services PMI – Monday, 2/05 – This report, released by the Institute for Supply Management, shows business conditions in the U.S. services sector, which contributes over 70% of the U.S. GDP. The ISM Services PMI is a forward-looking indicator, providing an important insight into the factors that influence GDP growth and inflation. PMI indices are leading economic indicators used by economists and analysts to gain timely insights into changing economic conditions since the direction and rate of change in the PMIs usually precede changes in the overall economy.
» January’s S&P Global U.S. Composite PMI – Monday, 2/05 – This report, published by S&P Global, produces a weighted average of manufacturing and service sector PMIs. The outcome is widely perceived as an accurate leading indicator of business conditions, which helps analysts and economists to correctly anticipate changing economic trends.
» December’s Consumer Credit Change – Wednesday, 2/07 – This report, released by the Federal Reserve, calculates the variation in the total amount of outstanding credit. Investors and analysts use consumer credit data to assess the extent to which consumers are using credit to pay for products and services, as the change in consumer credit has a strong correlation with both consumer confidence and expenditures. Because consumer spending accounts for about 70% of U.S. GDP, gauging its health helps predict overall economic trends.
