Investors look for rate cut

Investors will be analyzing this week's economic data in an attempt to predict the actions of the Federal Reserve. Today, consumer confidence for March will be released. \nEconomists are calling for confidence to slip to 104.2 from a reading of 106.8 in February. Wall Street will also look at the personal income and spending report for February. The report, scheduled for release Thursday, gives investors a sign of how much consumers are spending. If the report shows a positive number, it is a sign that consumption is increasing. \nWall Street will use the economic data to debate whether the Federal Reserve may lower interest rates in the near future. Last Tuesday, the central bank announced that it would lower interest rates by 50 basis points to 5 percent. Many investors, who hoped the Fed would lower rates by 75 basis points, are now hoping that Fed will lower rates before its May 15 meeting. \nLast Week\nFriday, the Dow Jones Industrial Average gained 115.30 to close at 9,504.78. The Nasdaq Composite Index also ended the trading session in positive territory, closing up 31.04 to finish the week at 1928.74. The Nasdaq was able to post a 2 percent gain for the week, while the Dow Jones Industrial Average lost 3 percent. \nStock News\nDrug maker Immunex announced Friday that it would halt late-stage studies on Enbrel for treatment of chronic heart failure. The company also announced that its experimental asthma drug Nuvance did not benefit patients in two studies. News from the company attracted a series of analyst downgrades, while the stock closed down nearly 40 percent. \nOnline and discount broker Charles Schwab said it would reduce its workforce by 11 to 13 percent Thursday. The company announced it now forecasts earnings of 6 to 7 cents a share, after charges, for the first quarter. Analysts had expected the company to earn 11 cents per share for the quarter, according to First Call/Thomson Financial. \nAlso announcing major workforce reductions last week were Motorola and Procter & Gamble. Motorola announced it would cut 4,000 positions. The latest job cut brings the total number of announced layoffs at Motorola to 42,000 since December. Procter & Gamble announced it would be cutting 9,600 jobs worldwide. About 40 percent of the reductions are expected to come from the United States. \nFinal Note\nInvestors might be looking at various international affairs this week, such as the situation in Europe. The European Union is having a difficult time with mad cow and foot and mouth disease. The financial cost of the outbreak could become a big factor for various American companies if the diseases were to be found in America.