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What to Watch in the Stock Market This Week

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Heading into the last full trading week of 2015, stocks still haven't committed to a direction, up or down, for the year. The S&P 500 is lower by less than 2% and the Dow Jones Industrial Average has slipped less than 3% since Jan. 1.

^INX data by YCharts .

The coming week could do a lot to break that stalemate, as the markets will likely move following the Federal Reserve's interest-rate meeting. Meanwhile, General Mills is set to post its third-quarter earnings results and Disney will make a play for the biggest movie opening in history.

Tuesday, Dec. 16: Interest rate liftoff

The Federal Reserve begins a two-day monetary policy meeting on Tuesday that is widely expected to produce the first uptick in the central bank's federal funds rate in nine years. That rate has been effectively zero since late 2008.

Data source: Federal Reserve Economic Data.

Yet in a recent speech, Fed chairwoman Janet Yellen noted that officials have seen "continued improvement" in many of the key metrics, like employment growth and economic activity, that they've been looking for to support a return to non-zero interest rates.

Since that speech, the economic picture has only brightened. The monthly jobs report last week showed that the economy produced over 200,000 new jobs as the unemployment rate held steady at a seven-year low of 5%. While investors can expect the Fed to begin raising rates this week, they shouldn't count on a quick lift off. Central bank officials' latest projections put interest rates below 3% as far out as 2017.

Thursday, Dec. 17: Checking in on gluten-free Cheerios

Packaged foods giant General Mills posts earnings results on Thursday that could show a slowdown in both sales and profit growth. At its last quarterly update, the company had some encouraging news for investors. Sure, sales slipped by 1%, but after accounting for currency swings, that figure was actually 4% growth. Leading the way was General Mills' cereal division, which was boosted by strong performance in its new gluten-free Cheerios offerings. That growth, combined with cost cuts, helped the company log a 23% spike in operating profit as EPS leapt 25% higher to $0.69 per share.

Image source: Disney.

Of course, it's possible that the film could fail to live up to investors' high expectations. It has been a decade since a Star Wars movie was put through the box office test, after all, and the brand doesn't currently have the same recognition around the world that the Avengers franchise enjoys.

But even if Episode VII doesn't make it into the top three highest grossing films of all time with $3 billion of global receipts, it is likely to set the stage for six years of popular annual theatrical Star Wars releases, along with all the related consumer product profits that Disney can collect along the way.

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The article What to Watch in the Stock Market This Week originally appeared on Fool.com.

Demitrios Kalogeropoulos owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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