WORLD> America
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WORLD> America
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Rush of US economic data likely to shape week
(Agencies)
Updated: 2008-11-03 10:08 Hedge fund investors tend to be wealthy individuals or institutions such as pension funds that in recent years relied on their funds to boost returns through the use of complex financial instruments such as derivatives that have now fallen out favor.
Still, Ugeux said October's end was a clear improvement for the market and that a more sober evaluation of economic risks by the market could make for a somewhat smoother ride. "Fundamentally, October was some kind of an aberration. It was sheer panic, people going in any direction," he said. While the markets showed more orderly trading of late, this week brings a rush of economic data that could unnerve Wall Street if it points a difficult recession. Additionally, quarterly results are expected from Cisco Systems Inc., Goodyear Tire & Rubber Co., Time Warner Inc., Sprint Nextel Corp. and Walt Disney Co. On Monday, the Commerce Department issues a report on construction spending while the Institute for Supply Management, a private research group, releases data on the manufacturing sector. Major automakers report US sales. Tuesday brings a Commerce Department report on factory orders and on Wednesday the ISM issues a service sector report. On Thursday, retailers report October sales results expected to be disappointing as consumers, the drivers of the economy, cut back their spending. Friday brings what is widely seen as the week's most important report, the Labor Department's October employment figures. Wall Street remains nervous that jumps in unemployment will erode confidence in the economy and cause nervous consumers, even those still employed, to pare their spending. That is a worrisome prospect as consumer spending accounts for more than two-thirds of US economic activity. And anxiety about troubles at marquee companies, like struggling automakers General Motors Corp. and Chrysler LLC, could further weigh on investor sentiment. Layoffs there, for example, would not only hurt the economy but also likely deal a psychological blow.
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