The stock market opened higher as traders looked to resume the rally following a dip on Monday. The positive sentiment was driven by news that February's US durable goods orders rose for the first time in three months, indicating increased optimism among firms about the state of the economy. This data suggests that the market mood may have shifted, with investors hopeful about the future.
Investors are now eagerly awaiting fresh economic data, including inflation data and Fed commentary, which are expected to be released later this week. These key indicators will provide further insights into the state of the economy and may influence market sentiment and future trading decisions.
It's important to note that markets will be closed for Good Friday, so investors won't be able to trade the news on that day. However, the positive response to the durable goods orders data indicates that investors are optimistic about the potential for continued growth in the stock market.
US stocks rose slightly on Monday as investors tried to rebound from last week's volatile run. Markets suffered a meaningful pullback last week as investors checked their expectations for rapid interest rate cuts this year. The latest data defying rate-cut forecasts was Friday's jobs report, which saw 303,000 jobs added in March. This week, investors will be focused on Wednesday's consumer price index report as a key indicator of where interest rate policy may go. Fed officials are also set to speak in the coming days, including New York Fed President John Williams and Boston President Susan Collins, who will both speak on Thursday.
Wall Street traders are finding it challenging to navigate the divergent economic reports and profit from them. Recent reports suggest retail sales are surging along with slowing gross domestic product. Industrial production has been rising while manufacturing has been easing. Jobless claims are holding steady—yet hiring has ticked down. The nonfarm payrolls report on Friday marked the first major macro data dump for the month of April, and it suggested that the US economy is still on its trajectory of rebalancing labor markets, moderating wage growth. Traders are finding it challenging to navigate the divergent economic reports and profit from them.
Retail investors are increasingly using market data to make better financial decisions. Data plays a pivotal role in all types of investing, helping institutional investors generate alpha and identify trading opportunities. Since the COVID-19 pandemic, retail investors have had more time to spend in digital forums with greater access to financial information. Daily retail trading has doubled since 2019. Retail investors are using data to ask more insightful questions and are tapping into public information sources and brokerage platforms. Technology has made it easier for retail investors to access market data and make informed investing decisions. Different types of data, such as real-time market data, alternative data, options data, and data on new asset classes, can provide valuable insights for investors. By incorporating different types of data, retail investors can better assess their investments' potential, adapt to changing market conditions, and increase their potential for financial success.
A team of economists at RAND used AI to analyze 24 years of retailers' SEC disclosures and found a link between investor returns and concrete investments in frontline workers. The SEC mandated that publicly traded companies include information about their efforts to attract, develop, and retain workers in their annual disclosures. Retailers' post-2020 filings contain important information about how they are investing in people, and this information can often predict stock performance. Retailers that made strong disclosures about investing in workers saw their short-term stock prices increase anywhere from 2% to 2.5%. The study suggests that companies that invest in their frontline workers could see a non-trivial uptick in their financials if they were clearer and more direct about their investments. The findings indicate that investing in companies that invest in their employees could lead to higher returns for investors. [1c228898]