Wall Street Week Ahead: Central banks, data to steer investors
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With signs of a slower economy mounting, the near-term outlook for U.S. stocks isn't rosy, but investors may find comfort next week from the world's major central banks.
The Federal Reserve will meet on Tuesday and Wednesday, with the report of weaker-than-expected, first-quarter growth could reinforce expectations the Fed will keep purchasing bonds at a pace of $85 billion a month.
Low interest rates and ample liquidity provided by the Fed and other central banks have buoyed global equity markets because low borrowing costs for businesses and consumers lead to richer corporate profits. Major U.S. stock indexes hit record highs earlier this month.
"As long as it looks like central banks are on your side and on investors' side as far as providing more liquidity, that's going to help improve sentiment," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.
"I don't think (Fed officials) have got enough data since the last meeting to really justify changing policy. I really don't think they're going to look at slowing the pace of purchases until probably September."
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