What the Macro Data Will Mean for Markets This Week

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Earnings season is wrapping up.

So, what should you be watching as the market kicks the week off with a rally?

Kenny Polcari, senior wealth strategist at Slatestone Wealth, explains what he's watching this week.

Video Transcript:

Katherine Ross: Well, we certainly got a lot of economic data this week, but let's go ahead and turn our attention to next week. Joining me to break down what he's going to be watching in the markets, is Kenny Polcari, senior wealth strategist at Slatestone Wealth.  Kenny, what exactly are you going to be watching in the markets next week?

Kenny Polcari: There's a lot going on next week, right. There's gonna be lots going macro data, we're gonna get some earnings from the retails, but look, we already know what the retails are gonna say. We've already seen what's happened today. We got retail sales stumbles, we got consumer spending, they were horrible, even worse than expected. So you can kinda get a sense of what we're gonna hear from the retails. Now, a place like Walmart is gonna have certainly in-store sales as well as online sales and we're hoping clearly that you're gonna see some more activity in both places, but certainly, you're gonna be keen on what's happening in their online division, right. Away from that, I think the focus is much more gonna be focused on the macro data. Now that we're really through earnings, they're gonna start to look at the macro data. We're a halfway through the second quarter, we're starting to see, you know, macro data in the second quarter that's not improving, which was very different than what we thought was going to happen and so, therefore, concern over the economy, concern over the US economy, as well as the global economy is gonna continue to kind of be the driver of the markets and then you know this back and forth arguing between the US and China is gonna continue to create some concern. But what we're also seeing as China sort of starts to awaken and as Europe is gonna start to awaken, we are seeing an increase in demand in energy, which is certainly helping the oil markets. We'd like to see that continue next week because that would speak positively about the kind of investor psyche as well as kind of the recovery in the global market space.

Ross: If there is one thing for investors to watch next week, what would that be?

Polcari: I think I'm gonna tell you to watch the macro data. I think it's gonna be much more important. Just as it's gonna give you the underlying tone of the not only the direction, we know it's negative but next week we're also getting manufacturing PMIs and services PMI and services PMI is gonna be one to really watch if the US economy is 70 or 75% of the services economy, and so you want to see that number start to improve. But until we get the country really open and I know there are some states that are starting to open, so you should see a little bit of movement in that number. But the big states like New York and Chicago and Boston, L.A., which are still very much locked down, are gonna create the negative side to that story but one way or the other, I think you'll want to be-- next week and even in the weeks after, the broader macro data which is gonna give you a clue on where the US economy is, where the consumer is, and what the global economy should be doing.

Ross: Kenny as always, thank you for taking the time to join us today. And for more on the coronavirus pandemic and its impact on business, head on over to thestreet.com

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