Eurozone troubles may keep stocks on edge
Monday, 17 May 2010
NEW YORK, May 16 (Reuters): Stocks could face more volatility next week as growing doubts about whether Europe can solve its deepening debt crisis are likely to take centre stage again.
A $1 trillion rescue package unveiled at the week's start gave only temporary relief to investors, who are increasingly worried about the impact of the crisis on the global recovery and the euro.
Wall Street also will be anxious to see the results from retailers next week, and will pay special attention to their forecasts for the rest of the year. Wal-Mart Stores and Lowe's Co are among companies expected to report.
Below-par results Friday from retailers, including Nordstrom and JC Penney Co Inc, cast some doubt on the consumer's health.
The week also brings government data on inflation, which is expected to remain tame, and on housing, a sector still struggling to recover from the country's worst economic downturn since the 1930s.
The three major US stock indexes ended Friday's session with losses ranging from 1.5 per cent to 2 per cent amid worries over Europe's debt problems. The CBOE Volatility Index or VIX, which is Wall Street's fear gauge, jumped 17.1 per cent.
A $1 trillion rescue package unveiled at the week's start gave only temporary relief to investors, who are increasingly worried about the impact of the crisis on the global recovery and the euro.
Wall Street also will be anxious to see the results from retailers next week, and will pay special attention to their forecasts for the rest of the year. Wal-Mart Stores and Lowe's Co are among companies expected to report.
Below-par results Friday from retailers, including Nordstrom and JC Penney Co Inc, cast some doubt on the consumer's health.
The week also brings government data on inflation, which is expected to remain tame, and on housing, a sector still struggling to recover from the country's worst economic downturn since the 1930s.
The three major US stock indexes ended Friday's session with losses ranging from 1.5 per cent to 2 per cent amid worries over Europe's debt problems. The CBOE Volatility Index or VIX, which is Wall Street's fear gauge, jumped 17.1 per cent.