Rising Oil Prices May Pressure Stock Market Despite Fed's Steady Hand

Federal Reserve Chairman Ben Bernanke addresses members and guests of the National Italian American foundation Tuesday, Nov. 28, 2006 in New York. Bernanke said Tuesday that risks from inflation or a worse-than-expected housing slump could further complicate things for an economy already in slowdown mode. (AP Photo/Mary Altaffer)
Mary Altaffer
Federal Reserve Chairman Ben Bernanke addresses members and guests of the National Italian American foundation Tuesday, Nov. 28, 2006 in New York. Bernanke said Tuesday that risks from inflation or a worse-than-expected housing slump could further complicate things for an economy already in slowdown mode. (AP Photo/Mary Altaffer)

Joe Ranieri, managing director at Canaccord Adams, told CNBC’s “Squawk Box” that the market will face “mixed signals” this week.

“Eyes will be mostly on (Federal Reserve Chairman Ben) Bernanke,” he said Monday. “I think his indications of moderate growth and, right now, a continued neutral stance, should be enough to fuel the market.”

But there may be trouble ahead.

Money, Markets & Oil
Money, Markets & Oil   

“In the background, you definitely have rising gas prices and oil prices,” Ranieri said. “If oil prices continue to climb, it could put some pressure on the market.”

On Wednesday, Bernanke is scheduled to appear before Congress and give his views on the subprime mortgage market. He is expected to restate his view that the economy is on track for moderate growth this year.

Last week, the Fed left interest rates unchanged at 5.25%.