Market Wrap-up for Feb 7 – Jumping the Gun

This week, Wall Street saw a slew of disappointing reports, fueling investor speculation about the pace of both domestic and global economic growth. On Monday, ISM manufacturing for January fell to its lowest figure since May. Adding to concerns, labor figures came in well below expectations for both weekly jobless claims and ADP’s private sector jobs report. And for the individual investor, 2014′s rocky start has understandably shaken confidence.

Cause for Concern?

This year, volatility has managed to creep its way back into the markets; and since volatility was essentially non-existent in 2013, many investors have been somewhat “spooked” by its return. Investors must realize that the global economy is currently entering a transition period that the market has never really seen before.

The Fed is slowly making its way out of the market, reducing its unprecedented bond/mortgage purchasing program. This in itself will no doubt create some volatility in the markets both at home and abroad, as investors weigh the consequences of the central bank’s actions. Furthermore, markets will have to adjust to a “post-taper” world, where hopefully fundamentals will once again help clear the noise.

In the short run, investors must be able to look past the spikes and drops on Wall Street. Though markets will likely see several more disappointing reports in the near future, it is important to remember that given the current economic landscape, recent bad data is not bad enough to change the overriding narrative of growth. Bottom line: Stick to the fundamentals before jumping the gun.

Be sure to check the Dividend Daily for all the latest earnings reports, analyst moves, and much more.

Looking Toward Next Week

Next week, investors will once again see a slew of economic and earnings reports. On Tuesday and Thursday Fed Chairwoman Janet Yellen will testify on the semiannual monetary policy report before the House Financial Services Committee. Retail and core retail sales will be reported on Thursday, while preliminary UoM consumer sentiment data is slated to be announced on Friday.

On the earnings front, CVS Caremark (CVS) will kick off the week. On Wednesday, Thomson Reuters (TRI), Mondelez International (MDLZ