Economic reports for the week include:
Mon. - None of note
Tues. - None of note
Wed. - None of note
Thur. - Initial Jobless Claims, Wholesale Inventories, Consumer Credit
Fri. - None of note
Some of the more noteworthy companies that release quarterly earnings this week are:
Mon. - Circuit City(CC)
Tues. - None of note
Wed. - Alcoa(AA), Bed Bath & Beyond(BBBY), Immucor(BLUD), Monsanto(MON)
Thur. - Accenture(ACN), Constellation Brands(STZ), Pier 1 Imorts(PIR)
Fri. - None of note
Other events that have market-moving potential this week include:
Mon. – CIBC Biotech & Specialty Pharmaceuticals Conference, Howard Weil Annual Energy Conference
Tue. – CIBC Biotech & Specialty Pharmaceuticals Conference, Howard Weil Annual Energy Conference
Wed. – DELL Analyst Meeting, Fed's Greenspan testifies on Government Sponsored Enterprises
Thur. – DELL Analyst Meeting, NOK Annual General Meeting, Fed's Santomero speaks on Monetary Policy
Fri. – Fed's Greenspan speaks at Consumer Affairs Conference
BOTTOM LINE: I expect US stocks to decline modestly this week on continuing worries over stubbornly high energy prices, corporate investigations and slowing global growth. While measures of investor anxiety are near levels normally associated with meaningful market bottoms, one more push lower in the major indices is likely. This may occur around earnings season as some companies cut forward guidance slightly. However, I continue to expect the second half of the year to be much better for US stocks than the first half as inflation decelerates, commodities prices fall, long-term interest rates decline, low valuations tempt investors, US growth remains relatively healthy, the US dollar stabilizes, employment continues to improve, merger activity persists and corporate spending accelerates. My trading indicators are still bearish and the Portfolio is market neutral heading into the week.
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