Outlook for the Week
It’s going to be a second week of heavy and influential corporate reporting for earnings hounds.
Reports from the likes of Boeing (BA), US Steel (X), Verizon (VZ), Exxon (XOM) and Comcast (CMCSA) will be in the spotlight and could impact the broader market. So far, the damage inflicted due to sub par results or just matching estimates has been minimal. However, sentiment did take a turn for the worse on both Thursday and Friday. Without corrective action, the thought is that similar results will beget further selling pressure as the idea of multiple contraction comes into play.Economic watchdogs are going to busy as well, beginning with a slug of reports on Wednesday. On that day, the FOMC meeting will take center stage, but other data could prove to be more important. Rates are widely expected to remain unchanged at 5.25%. However, price pressures and slightly better growth for the economy has sparked talk of potential increases. That said, the policy statement and any wording that might hint at the Fed’s intentions on the future path of rates will be important. For many investors, with earnings growth accepted as slowing down, without a rate cut provision sometime later this year, the view is that 2007 will be a bumpy one.Other economic data coming both before and after the FOMC statement could ultimately ease or inflate Fed policy and viewed as taking top billing for the week. The Q4 GDP out Wednesday morning is one that investors should be on the lookout for. The Street is looking for 3.0% annual growth, which has been quickly adjusted upwards since last month. Sinking gas prices, warmer temperatures in the northeast and a decent holiday shopping season are seen as being key catalysts for the bump up by analysts. Meanwhile, the core PCE price index is expected to show an increase of 2.2%. And on Friday, the jobs report will be dissected for any clues over a firm labor market which might lean the Fed towards a tighter monetary policy.
Monday
Economic: NAEarnings: Mattel (MAT), Phelps Dodge (PD), USG Corp (USG), Verizon (VZ), Schering (SGP), Atheros (ATHR), Gol Air (GOL), Zimmer (ZMH)
Tuesday
Economic: Consumer Confidence (109.5)Earnings: 3M (MMM), Black & Decker (BDK), Illinois Tool (ITW), JetBlue (JBLU), Merck (MRK), UPS (UPS), Cymer (CYMI), Flextronics (FLEX), SanDisk (SNDK), US Steel (X), Websense (WBSN)
Wednesday
Economic: GDP Advance (3.0%), Chain Deflator (1.7%), Employment Cost Index (1.0%), Chicago PMI (52), Construction Spending (0.0%), Weekly Crude, FOMC Policy (5.25%)Earnings: Altria (MO), Boeing (BA), Kodak (EK), CBOT (BOT), Hilton (HLT), OptionsXpress (OXPS), NYMEX (NMX), Eagle Matls (EXP), Gilead (GILD), Google (GOOG), Armor Hldg (AH), JDS Uniphase (JDSU), Starbucks (SBUX), Sunoco (SUN), Pulte (PHM)
Thursday
Economic: Inc & Spend (.5%, .7%), Weekly Claims (318K), ISM Index (51.5), Auto / Truck Sales (5.4M, 7.4M)Earnings: Archer Dan (ADM), Comcast (CMCSA), CVS (CVS), Exxon (XOM), Celgene (CELG), Monster (MNST), Under Armour (UA), Valero (VLO), Amazon (AMZN), Dolby (DLB), Electronic Arts (ERTS), Intuitive Surgical (ISRG), Rackable Systems (RACK), Silicon Motion (SIMO), Vertex (VRTX)Friday Economic: Nonfarm Pay (150K), Unemployment (4.5%), Hourly Earnings (.3%), Factory Orders (1.5%), Michigan (97.8) Earnings: Arch Coal (ACI), Chevron (CVX), NYSE Group (NYX), Oshkosh (OSK), Ventana Med (VMSI), Wendy’s (WEN)
Reports from the likes of Boeing (BA), US Steel (X), Verizon (VZ), Exxon (XOM) and Comcast (CMCSA) will be in the spotlight and could impact the broader market. So far, the damage inflicted due to sub par results or just matching estimates has been minimal. However, sentiment did take a turn for the worse on both Thursday and Friday. Without corrective action, the thought is that similar results will beget further selling pressure as the idea of multiple contraction comes into play.Economic watchdogs are going to busy as well, beginning with a slug of reports on Wednesday. On that day, the FOMC meeting will take center stage, but other data could prove to be more important. Rates are widely expected to remain unchanged at 5.25%. However, price pressures and slightly better growth for the economy has sparked talk of potential increases. That said, the policy statement and any wording that might hint at the Fed’s intentions on the future path of rates will be important. For many investors, with earnings growth accepted as slowing down, without a rate cut provision sometime later this year, the view is that 2007 will be a bumpy one.Other economic data coming both before and after the FOMC statement could ultimately ease or inflate Fed policy and viewed as taking top billing for the week. The Q4 GDP out Wednesday morning is one that investors should be on the lookout for. The Street is looking for 3.0% annual growth, which has been quickly adjusted upwards since last month. Sinking gas prices, warmer temperatures in the northeast and a decent holiday shopping season are seen as being key catalysts for the bump up by analysts. Meanwhile, the core PCE price index is expected to show an increase of 2.2%. And on Friday, the jobs report will be dissected for any clues over a firm labor market which might lean the Fed towards a tighter monetary policy.
Monday
Economic: NAEarnings: Mattel (MAT), Phelps Dodge (PD), USG Corp (USG), Verizon (VZ), Schering (SGP), Atheros (ATHR), Gol Air (GOL), Zimmer (ZMH)
Tuesday
Economic: Consumer Confidence (109.5)Earnings: 3M (MMM), Black & Decker (BDK), Illinois Tool (ITW), JetBlue (JBLU), Merck (MRK), UPS (UPS), Cymer (CYMI), Flextronics (FLEX), SanDisk (SNDK), US Steel (X), Websense (WBSN)
Wednesday
Economic: GDP Advance (3.0%), Chain Deflator (1.7%), Employment Cost Index (1.0%), Chicago PMI (52), Construction Spending (0.0%), Weekly Crude, FOMC Policy (5.25%)Earnings: Altria (MO), Boeing (BA), Kodak (EK), CBOT (BOT), Hilton (HLT), OptionsXpress (OXPS), NYMEX (NMX), Eagle Matls (EXP), Gilead (GILD), Google (GOOG), Armor Hldg (AH), JDS Uniphase (JDSU), Starbucks (SBUX), Sunoco (SUN), Pulte (PHM)
Thursday
Economic: Inc & Spend (.5%, .7%), Weekly Claims (318K), ISM Index (51.5), Auto / Truck Sales (5.4M, 7.4M)Earnings: Archer Dan (ADM), Comcast (CMCSA), CVS (CVS), Exxon (XOM), Celgene (CELG), Monster (MNST), Under Armour (UA), Valero (VLO), Amazon (AMZN), Dolby (DLB), Electronic Arts (ERTS), Intuitive Surgical (ISRG), Rackable Systems (RACK), Silicon Motion (SIMO), Vertex (VRTX)Friday Economic: Nonfarm Pay (150K), Unemployment (4.5%), Hourly Earnings (.3%), Factory Orders (1.5%), Michigan (97.8) Earnings: Arch Coal (ACI), Chevron (CVX), NYSE Group (NYX), Oshkosh (OSK), Ventana Med (VMSI), Wendy’s (WEN)
Labels: AMZN, ATHR, BA, GILD, JBLU, JDSU, MAT, MRK, NYX, PHM, SGP, SIMO, USG, VLO, VZ, WBSN, X, XOM
posted by Stock Administrator @ 4:38 PM
0 Comments:
Post a Comment
<< Home