Wall St Week Ahead: Investors look for stocks pullback
NEW YORK (Reuters) - Investors will likely look for evidence the U.S. housing slump may be over and for signs of moderating inflation next week before deciding whether the rally in U.S. stocks since mid-March is over.
The steepest one-day drop in U.S. stocks in two months on Thursday this week gave investors pause, but signs of slowing retail sales and slowing inflation on Friday encouraged a return of confidence.
"On a short-term basis, the market is very vulnerable to a normal 3 percent, 5 percent correction," said Al Goldman, chief market strategist at A.G. Edwards in St. Louis. "I would think we would probably have a normal pause to refresh coming up."
But when or what might spark a pullback is impossible to predict, he added.
The Dow Jones industrial average (.DJI: Quote, Profile, Research and the Standard & Poor's 500 Index (.SPX: Quote, Profile, Research both rose for a sixth straight week, with the Dow setting new all-time closing and intraday highs.
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