The week ahead
On Tuesday, the ISM Non-Manufacturing report is expected to show a small increase, from 53.4 to 54.0, indicating continued expansion and recovery from the slowdown. This matters, as the service sector accounts for seven-eighths of the economy.
Also on Tuesday, the international trade balance is expected to show a decline from a deficit of $45.7 billion to one of $46.3 billion. A sign that exports are recovering would help the manufacturing sector. Although exports appear to be increasing, imports may be growing even more quickly, largely reflecting faster economic growth here in the U.S.
Finally, the March meeting notes for the Federal Open Market Committee will be released on Wednesday. With increasing dissonance between Janet Yellen and other Fed members, the minutes should provide some insight into how the committee as a whole is thinking. As uncertainty about the direction of Fed policy rises, this will be valuable information.
Have a great week!
Brad McMillan is the chief investment officer at Commonwealth Financial Network, the nation’s largest privately held independent broker/dealer-RIA. He is the primary spokesperson for Commonwealth’s investment divisions. This post originally appeared on The Independent Market Observer, a daily blog authored by McMillan.