Economic reports for the week include:
Mon. - Empire Manufacturing, Net Foreign Security Purchases, NAHB Housing Market Index
Tues. - CPI, Housing Starts, Industrial Production, Capacity Utilization
Wed. - PPI
Thur. - Initial Jobless Claims, Leading Indicators, Philly Fed.
Fri. - None of Note
A few of the more noteworthy companies that release quarterly earnings this week are:
Mon. - Agilent Technologies(A), Lowe’s(LOW)
Tues. - Abercrombie & Fitch(ANF), American Eagle Outfitters(AEOS), Applied Materials(AMAT), Deere & Co.(DE), Estee Lauder(EL), Hewlett Packard(HPQ), Home Depot(HD), JC Penney(JCP), Nordstrom(JWN), Staples(SPLS), TJX(TJX), Wal-Mart Stores(WMT)
Wed. - BEA Systems(BEAS), Medtronic(MDT), Network Appliance(NTAP)
Thur. - Aeropostale(ARO), Autodesk(ADSK), Barnes & Noble(BKS), GameStop(GME), Gap Inc.(GPS), Limited Brands(LTD), Marvell Technology(MRVL)
Fri. - AnnTaylor Stores(ANN)
Other events that have market-moving potential this week include:
Mon. - None of note
Tue. - None of note
Wed. - None of note
Thur. - Semi Book-to-Bill
Fri. - None of note
BOTTOM LINE: I expect US stocks to finish the week mixed-to-lower on energy fears and Retail sector earnings worries. The Retail sector may come under pressure this week on disappointing earnings and high gas prices. However, record homes sales, soaring auto sales and very hot weather in many parts of the country were the main culprits behind any downturn in clothing sales in recent weeks. I would use any temporary weakness in retailers to accumulate select shares ahead of a strong fourth quarter. I continue to believe we are in a consolidation phase within a significant intermediate-term move higher in the major averages. My trading indicators are still giving bullish signals and the Portfolio is 50% net long heading into the week.
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