A look at the week ahead for Wall Street

The worst month on Wall Street in nearly a year has left market pros and retail investors wondering if the long-in-the-works correction is finally here.

“It remains to be seen, but it feels like this could be the correction that people have been talking about forever,” said Hank Smith, chief investment officer at Haverford Investments. “You just can’t run as long as much as we have off the bottom without seeing a pullback of maybe 10% on the S&P 500.”

Better-than-expected quarterly results from marquee names such as Intel, Apple and Ford Motor had little impact on the individual stocks or the broad market last week. Friday’s fourth-quarter GDP report — showing the fastest economic growth in six years — coincided with a stock selloff.

That weakness looks to remain in place this week, the first week of February, as investors sort through more corporate profit reports and readings on the consumer, housing and the labor market. [Read the full article]

The worst month on Wall Street in nearly a year has left market pros and retail investors wondering if the long-in-the-works correction is finally here.

“It remains to be seen, but it feels like this could be the correction that people have been talking about forever,” said Hank Smith, chief investment officer at Haverford Investments. “You just can’t run as long as much as we have off the bottom without seeing a pullback of maybe 10% on the S&P 500.”

Better-than-expected quarterly results from marquee names such as Intel, Apple and Ford Motor had little impact on the individual stocks or the broad market last week. Friday’s fourth-quarter GDP report — showing the fastest economic growth in six years — coincided with a stock selloff.

That weakness looks to remain in place this week, the first week of February, as investors sort through more corporate profit reports and readings on the consumer, housing and the labor market. [Read the full article]

World shares sank to a three-month low on Monday as concerns about Greece’s debts and a reminder of the challenges China faces to curb inflation stung risk demand, helping push the dollar to a six-month high versus a currency basket.

The MSCI world equity index (^MIWD00000PUS – News) fell to its weakest level since early November, as investors cut exposure to risky trades while Athens scrambles to convince its European colleagues it will do what it takes to repair its finances.

Speculation that China may have to tighten monetary policy picked up after business polls on Monday showed strong growth an higher inflation. [Read the full article]

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U.S. manufacturing activity likely continued to grow in January as customers restock bare shelves, although some fear high unemployment could hurt the recovery in the industrial sector and the broader economy.

Economists polled by Thomson Reuters expect the index from the Institute for Supply Management, a trade group of purchasing executives, will read 55.5 in January, compared to 55.9 in December — the highest reading since April 2006. A reading above 50 indicates growth. If January’s measure stays above 50, it would be the sixth straight month of expansion.

ISM’s manufacturing index, which is due out Monday at 10 a.m. EST, first showed growth in August after 18 months of contraction.

ISM had said that its index of new orders, a signal of future production, jumped in December to 65.5, the highest level in 5 years.

It’s one welcome sign. [Read the full article]

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