Investors were banking on stocks tied to an economic recovery last week, with the Dow Jones Industrial Average and the S&P 500 enjoying new highs and the Nasdaq Composite remaining relatively muted. In the week ahead, traders will be concerned about a retail sales report, released on Tuesday, and minutes from the Federal Reserve’s latest meeting, for some guidance on when the central bank will begin tapering.
“I do think there will be a resurgence of the relation trade,” said one analyst. “I do think you can buy some of the cheap cyclicals.”
Also this week, Walmart, Home Depot, Macy’s, and Target are among the major companies slated to report their latest earnings.