The Week Ahead: Unmoved by the Sequester

Late Friday, President Obama signed into law a directive that will slash $85 billion in federal spending. That's right, folks: The sequestration is upon us. The effect of this 2.4% spending cut will trickle in over the coming weeks, and we've already witnessed much debate as to what its real impact will be. If we use last week's stock-market action as a barometer it says that, at least for now, Mr. Market does not see a big to-do over these cuts. 

Yes, some sectors of the economy will be hurt more than others -- hello, defense and government contractors -- and the economy is bound to slump as a result. But I think investors were looking at some others things this past week, such as the underlying strength in core capital goods and the continually improving domestic manufacturing economy. The January durable-orders figures, for instance, showed a 13.5% increase in machine-tool orders, and the Institute for Supply Management reported solid month-over-month climbs in production and orders in its February manufacturing numbers....758 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.