Sunday, June 11, 2006

Weekly Outlook

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

Economic reports for the week include:

Mon. - Monthly Budget Statement

Tues. - Producer Price Index, Advance Retail Sales, Business Inventories

Wed. - Consumer Price Index, Fed’s Beige Book

Thur. - Initial Jobless Claims, Empire Manufacturing, Net Foreign Security Purchases, Industrial Production, Philly Fed.

Fri. - Current Account Balance, Univ. of Mich. Consumer Confidence

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

Mon. - Lehman Brothers(LH)

Tues. - Best Buy(BBY), CA Inc.(CA), Flowserve Corp.(FLS), Freddie Mac(FRE), Goldman Sachs(GS)

Wed. - None of note

Thur. - Adobe Systems(ADBE), Bear Stearns(BSC), KB Home(KBH), Omnivision Technologies(OVTI), Pier 1 Imports(PIR)

Fri. - Carnival Corp.(CCL), Circuit City(CC), Winnebago Industries(WGO)

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

Mon. - Bear Stearns Tech Conference, Goldman Sachs Global Healthcare Conference

Tue. - Goldman Sachs Global Healthcare Conference, CSFB Consumer and Retail Conference, Bear Stearns Tech Conference, CIBC Industrial Products & Capital Goods Conference, Merrill Lynch Global Transport Conference, Deutsche Bank Media & Telecom Conference

Wed. - Merrill Lynch Global Transport Conference, Deutsche Bank Media & Telecom Conference, CSFB Consumer and Retail Conference, Merrill Lynch Agricultural Chemicals Conference, Needham Biotech Conference, CIBC Industrial Products & Capital Goods Conference

Thur. - Goldman Sachs Global Healthcare Conference, CSFB Consumer and Retail Conference, Merrill Lynch Global Transport Conference, Needham Biotech Conference

Fri. - None of note

BOTTOM LINE: I expect US stocks to finish the week modestly higher on decelerating inflation readings, short-covering, bargain hunting and declining long-term rates. My trading indicators are still giving mostly bearish signals and the Portfolio is 75% net long heading into the week.

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