The Dow Jones Industrial Average has been flirting with its all-time high for several sessions and any positive economic data this week could trigger the confetti. But some analysts say behind the hoopla are signs of a pullback.
"The closer we get to these milestone events, the market's going to want to hit it," Mark Eibel of Russell Investments told CNBC. If not the ISM services report, a good jobs report could push the Dow to a new record. "The key question will be whether we hold it," he added.
Global markets find themselves caught between growing economic and political uncertainty and extraordinary central bank support. Automatic spending cuts have kicked in in the U.S., China has taken new steps to tamp down its property market and an electoral stalemate in Italy could mean a new election. But with the Fed supporting stocks and a new high for the Dow within reach, positive U.S. economic data tomorrow could push the markets to a new record.
Economists are looking for the February ISM non-manufacturing index to come in at 55, down slightly from the 55.2 reading in January. A reading above 50 indicates expansion and a better-than-expected reading could be what pushes markets upward.