Happy Monday! The first full trading week of the year features a relatively heavy roster of economic data.
The ISM Services Index on Tuesday is expected to show a slight acceleration in activity for the services industry. Economists estimate that the gauge rose to 53.2 in December from 52.1 in November.
The Institute of Supply Management notes that readings above 50 indicate that the services sector is “generally expanding,” while anything below 50 indicates that the sector is “generally contracting.”
The ISM Manufacturing Index, released last week, increased to 49.3 from 48.4.
On Wednesday, the Federal Reserve releases the minutes of December’s Federal Open Market Committee meeting.
The stock market plummeted following the Fed’s last meeting when the U.S. central bank signaled that it might cut rates only two times in 2025, disappointing investors who had hoped for a more aggressive rate-cutting campaign this year.
The minutes of that meeting may provide more clues as to how Fed officials are thinking about monetary policy. The next FOMC meeting is scheduled for Jan. 31 to Feb. 1.
Finally, on Friday morning, the biggest piece of economic data of the week is set for release: December’s nonfarm payrolls report.
Employers are expected to have added 153,000 jobs in December, down from 227,000 in November, but still a healthy number.
At the same time, the unemployment rate is anticipated to hold steady at 4.2%.
The jobs report will be followed by the University of Michigan Sentiment Survey later that morning. Consumers have been feeling better about the economy in recent weeks, a trend that investors hope will continue.
