The biggest hurdle this week for investors was ISM Mfg on Monday. Gladly that took a nice step higher and so did stock prices on the news. Next up we have some key economic data today and Friday.
Today: ADP Employment and ISM Services
Friday: Government Employment Situation
Right now expectations for the employment picture are right on the recent trend line of 200-220K jobs added this past month. ISM Services has loftier estimates at a reading of 57.2 which is above the average this year.
This is a double edged sword. Good news could provide the catalyst to breakout higher. Unfortunately it also has the ability to breakout lower on any serious signs of weakness.
Given leading indicators into these reports I predict another neutral reading with more range bound trading as the result. That is 2015 in a nutshell which stinks if you have too much money in funds that just match the meager results of the S&P 500.
aka Steve Reitmeister
Executive Vice President, Zacks Investment Research