Sunday, October 02, 2005

Weekly Outlook

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

Economic reports for the week include:

Mon. - Construction Spending, ISM Manufacturing, Vehicle Sales
Tues. - Factory Orders
Wed. - ISM Non-Manufacturing, Pending Home Sales
Thur. - Initial Jobless Claims
Fri. - Change in Non-farm Payrolls, Unemployment Rate, Average Hourly Earnings, Wholesale Inventories, Consumer Credit

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

Mon. - AES Corp.(AES)
Tues. - None of note
Wed. - Ruby Tuesday(RI), Solectron Corp.(SLR)
Thur. - Accenture Ltd.(ACN), Constellation Brands(STZ), Costco Wholesale(COST)
Fri. - American Healthways(AMHC)

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

Mon. - None of note
Tue. - Fed’s Fisher, Fed’s Poole and Fed’s Santomero speak
Wed. - Fed’s Hoenig and Fed’s Pianalto speak
Thur. - Fed’s Fisher speaks
Fri. - Fed’s Fisher speaks

BOTTOM LINE: I expect US stocks to finish the week modestly higher. Technology shares will likely outperform as we begin a seasonally strong period of the year for the group. Hawkish Fed comments and weaker-than-expected economic data should spur a rebound in the T-year T-note. My trading indicators are giving bullish signals and the Portfolio is 100% net long heading into the week.

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