After a volatile session on Thursday as the International Energy Agency unveiled plans to release strategic reserves in a bid to push oil prices lower, stocks look set for a strong end to the week.
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The dollar rallies as stocks sell off. Insight on whether they can both go up together, with Rob Morgan, Fulcrum Securities; Michael Farr, Farr, Miller & Washington, and Axel Merk, Merk Investments.
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After six straight down weeks, stocks could get rocked in the week ahead amid a slew of economic reports. "Sentiment is still falling," one strategist said, though added that it "hasn't dropped into panic territory."
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The bulls trotted gingerly back into the stock market and, if they stick around on Friday, the market could avoid a sixth week of losses. Still, one market strategist cautioned: "It is not the beginning of a new bull market rally."
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Despite weak economic data a double dip recession is unlikely and investors should favor stocks over bonds, according to Chris Watling, the CEO of Longview Economics in London.
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The strongest case for stocks is a lack of alternatives but investors should be prepared for setbacks and get into defensive shares like consumer staples and healthcare as global growth has peaked, according to Philipp E. Baertschi, the chief strategist at Sarasin in Zurich.
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A look at where stocks are moving this summer, with Scott Wren, Wells Fargo Advisors; Ethan Anderson, Rehmann Financial; Priya Misra, Bank of America Merrill Lynch, and Steven Ricchiuto, Mizuho Securities.
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Stocks could continue to trade sluggishly Wednesday, but traders are watching the durable goods orders report expected tomorrow as a potential source of volatility.
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Stocks could have a rough ride into summer, as the Fed steps back from its quantitative easing program and the economy stumbles through a soft patch.
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Stocks are likely to take their cues from the foreign exchange market again on Tuesday after risk assets fell on a series of negative sovereign-debt related headlines from the Euro zone.
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The latest wave of market turbulence could sweep stocks lower into the summer, but it's not likely to be the start of a deep correction, analysts say.
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"My sense is it's not about the dollar getting stronger. It's about the euro getting weaker. I think there's been a bit of erosion in sentiment in part because of the politics in Washington over the deficit," says a chief currency strategist.
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"We were deeply oversold and we got the bounce. Now I think we have resistance overhead in the 12,600, 12,700 area on the Dow," says one technical analyst.
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Rising volatility in stocks and commodities could continue to be a dominant theme in the week ahead, as investors watch the latest U.S. economic reports for signs the recovery is moving forward.
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