Sunday, July 17, 2005

Weekly Outlook

There are a few important economic reports and a number of significant corporate earnings reports scheduled for release this week.

Economic reports for the week include:

Mon. - Net Foreign Security Purchases, NAHB Housing Market Index
Tues. - Housing Starts, Building Permits
Wed. - Greenspan Report on Economy & Policy
Thur. - Initial Jobless Claims, Leading Indicators, Philly Fed., Fed Minutes
Fri. - None of note

A few of the more noteworthy companies that release quarterly earnings this week are:

Mon. - 3M Co.(MMM), Bank of America(BAC), Citigroup(C), Charles Schwab(SCH), IBM(IBM), MBNA Corp.(KRB)
Tues. - Amgen(AMGN), Boston Scientific(BSX), Ford Motor(F), Intel Corp.(INTC), Johnson & Johnson(JNJ), Juniper Networks(JNPR), Merrill Lynch(MER), Motorola(MOT), Yahoo!(YHOO)
Wed. - Altria Group(MO), Delta Air Lines(DAL), Eastman Kodak(EK), General Motors(GM), General Dynamics(GD), JP Morgan(JPM), Linens 'N Things(LIN), Pfizer(PFE), Qualcomm(QCOM), Ryland Group(RYL), Seagate Technology(STX), United Technology(UTX), VeriSign(VRSN)
Thur. - Baxter Intl.(BAX), Broadcom(BRCM), Caterpillar(CAT), DR Horton(DHI), EMC Corp.(EMC), Eli Lilly(LLY), Google(GOOG), McDonald's(MCD), Microsoft(MSFT), Merck(MRK), Nextel Communications(NXTL), Office Depot(ODP), Sirius Satellite(SIRI), Scientific Atlanta(SFA), United Parcel Service(UPS), Xilinix(XLNX)
Fri. - Guidant(GDT), Halliburton(HAL), Schlumberger Ltd.(SLB)

Other events that have market-moving potential this week include:

Mon. - None of note
Tue. - Semi Book-to-Bill
Wed. - None of note
Thur. - None of note
Fri. - None of note

BOTTOM LINE: I expect US stocks to finish the week modestly higher on good economic reports and mostly positive economic data. Stocks are extended near-term and will likely go through a period of consolidation. However, I continue to believe US stocks will mount a significant rally sometime over the next several months and finish the year 10%+ higher than current levels. My trading indicators are still giving bullish signals and the Portfolio is 100% net long heading into the week.

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