Michael Sheldon Data Quotations

Looks like the stock market has gotten off on positive footing after yesterday's broad-based decline. We're seeing gains in eight of 10 S&P sectors. The data that came out so far was pretty much in line with expectations. Looking ahead, investors will be keeping an eye on auto sales.

My sense is we continue to see this correction over the next few weeks, but I think once we get through this period and some of the March data starts to come out, stocks will move higher.

The rally the past few days shows investors are willing to look past this period of uncertainty toward a pickup in growth in early 2006. It's a pretty optimistic viewpoint and that could change when the data comes in.

Looking into the second quarter, what could move us higher is a decline in oil prices, lower bond yields, solid economic data that is non inflationary and stronger growth on the earnings front.

Markets are in a trading range right now, consolidating gains after the last few months. A lot of investors were looking to this week's data as a way to break out of the range, but what we've seen has left enough doubt in the minds of the bulls that we aren't likely to break out of this range in the next few sessions.

We're likely to see a correction this year after the run we've had, as well. But the outlook for third and fourth quarter earnings has been good, and if the economic data continue to improve, we could see a slightly more narrow decline that what people have been expecting.

Despite terrorist events around the world, rising oil prices and a lukewarm job market, consumer spending has remained fairly strong, much better than many would have thought. But if the economic data starts to slow and oil rises above $60 a barrel, that could eat into consumer spending.

The key for next week is that the economic data show strong growth and only moderate inflation.

The economic data over the next several weeks are going to be difficult to interpret, and it'll be interesting to see how the market reacts,