Sunday, April 08, 2007

The Week Ahead

Here are Reuters comments for the week ahead:

Stocks should complete the last leg of their recovery from February's big sell-off next week as Friday's surprisingly strong job growth data calms investor concerns about the outlook for the economy and consumer spending.

The next question is whether U.S. equities can then take the step and recapture the record levels from two months ago. That will hinge on the corporate profits picture, which begins taking shape next week as the first of the market's bellwethers deliver first-quarter earnings reports.

"Unless we see a more significant drop in profit margins than the market might be expecting, the trend will probably be higher," said Brandon Thomas, chief investment officer at Envestnet Asset Management in Chicago.

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