BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Biotech longs and Retail longs. I have not traded today, thus leaving the Portfolio 75% net long. The tone of the market is neutral as the advance/decline line is slightly lower, sector performance is mostly positive and volume is above average. The Fed's Poole spoke in New York. Here is a summary via Bloomberg:
• The U.S. economy is "sound" despite housing slowdown.
• Inflation is retreating as energy costs stabilize.
• Forecasters are predicting 3% growth during next two years.
• U.S. growth is about the same as potential rate.
• He favors 1.5% core price inflation goal.
Overall, these comments are constructive. I suspect that the next catalyst for higher stock prices will be the upcoming earnings season as investor expectations are low and fears over lower forward guidance are high. I expect companies and investors to gain more confidence in the sustainability of the current expansion as the year progresses. Reuters is reporting that Iran's Larijani, Secretary of the Supreme National Security Council, said that the sailor issue can be resolved without a trial. Oil is falling 0.50 from session highs on the news, which seems to be stabilizing the broad market. I expect US stocks to trade mixed-to-higher into the close on short-covering, buyout speculation, more optimism over the Iranian/UK situation and bargain-hunting.
Monday, April 02, 2007
Stocks Mixed into Final Hour
Today's Headlines
Bloomberg:
- EMI Group Plc, the world’s third-largest music label, will sell songs without copyright protection software through Apple Inc.’s(AAPL) iTunes online store.
- New Century Financial(NEWC) filed for bankruptcy in Delaware today.
- Xerox(XRX) agreed to buy Global Imaging(GISX) for about $1.5 billion to gain more small companies as customers.
- Kohlberg Kravis Roberts agreed to buy First Data Corp.(FDC), the world’s biggest processor of credit-card payments, for about $29 billion in the second-biggest leveraged buyout so far this year.
- The US economy is slowing. Mortgage defaults are rising. And stocks are the cheapest in 20 years, a “buy” signal for some of the world’s biggest money managers.
- Bear Sterns(BSC), the biggest US underwriter of bonds backed by mortgages, set up a team to help homeowners stave off foreclosures as defaults by the riskiest borrowers surge.
- Oil rose above $66/bbl. in NY as a standoff between the UK and Iran over the capture of British naval personnel entered a ninth day.
- Corn is falling the maximum daily limit of 5% for the second day in a row after US farmers indicated they play to sow the most acres in 63 years to take advantage of high prices.
- Wheat futures are falling to a six-month low in Chicago on speculation livestock producers will abandon plans to feed wheat to cattle as corn prices fall.
- Egypt plans to increase sugarcane production to capture a share of the growing US market for biofuels and offset the cost of rising foods imports.
Wall Street Journal:
- DoubleClick’s(DCLK) potential buyers now include Google Inc.(GOOG), intensifying a growing battle for the profitable online advertising brokering business.
- Policies at Exxon Mobil(XOM), Chevron(CVX), ConocoPhillips(COP) and other oil companies make it harder for motorists to find ethanol readily at gasoline stations. Exxon’s standard contract with stations bars them from buying fuel from anybody else and the company doesn’t sell E85, ConocoPhillips doesn’t allow E85 sales under the covered canopy where gasoline is sold, while Chevron’s agreement with franchisees appears to discourage selling E85 on the main station island.
- US Democrats are under increased pressure to show they can achieve change after dozens of initiatives didn’t make much headway.
- American Intl. Group(AIG) CEO Sullivan plans to retain the entrepreneurial spirit fostered at the company by Maurice “Hank” Greenberg while improving oversight.
- Tribune Co.(TRB), owner of the Chicago Tribune and LA Times, accepted a takeover offer from billionaire investor Sam Zell.
NY Times:
- Genetic tests that reveal if people share common ancestors are attracting customers interested in tracing their family genealogy.
- Darfur immigrants in the US are choosing to live in Indiana and other Midwestern states instead of metropolitan areas.
- More than 1,000 potential contestants have expressed interest in vying for an award of more than $10 million to build a commercially viable car that can travel 100 miles on a gallon of gasoline.
Forbes.com:
- After a seven-year run "value" stocks are pricier than ever. When Jeremy Grantham, chairman of GMO, says that, it’s time to think about buying "growth" stocks instead.
Financial Times:
- Over 20 US fund managers overseeing more than $55 billion in investments want more transparency in US corporate political spending ahead of the 2008 presidential election.
- Saudi Arabian billionaire Prince Alwaleed bin Talal said the US is blocking Arab investment in its transportation industries because it’s “obsessed” with the Sept. 11 terrorist attacks.
Frankfurter Allgemeine Zeitung:
- German Chancellor Angela Merkel urged Iran and Syria to avoid pursuing paths of isolation in the Middle East and said that a nuclear-armed Iran would be “unaccecptable.”
Al-Rai Al-Aam:
- Kuwait’s budget for this fiscal year forecasts revenue of $28.8 billion based on an average oil price of $36 a barrel.
- EMI Group Plc, the world’s third-largest music label, will sell songs without copyright protection software through Apple Inc.’s(AAPL) iTunes online store.
- New Century Financial(NEWC) filed for bankruptcy in Delaware today.
- Xerox(XRX) agreed to buy Global Imaging(GISX) for about $1.5 billion to gain more small companies as customers.
- Kohlberg Kravis Roberts agreed to buy First Data Corp.(FDC), the world’s biggest processor of credit-card payments, for about $29 billion in the second-biggest leveraged buyout so far this year.
- The US economy is slowing. Mortgage defaults are rising. And stocks are the cheapest in 20 years, a “buy” signal for some of the world’s biggest money managers.
- Bear Sterns(BSC), the biggest US underwriter of bonds backed by mortgages, set up a team to help homeowners stave off foreclosures as defaults by the riskiest borrowers surge.
- Oil rose above $66/bbl. in NY as a standoff between the UK and Iran over the capture of British naval personnel entered a ninth day.
- Corn is falling the maximum daily limit of 5% for the second day in a row after US farmers indicated they play to sow the most acres in 63 years to take advantage of high prices.
- Wheat futures are falling to a six-month low in Chicago on speculation livestock producers will abandon plans to feed wheat to cattle as corn prices fall.
- Egypt plans to increase sugarcane production to capture a share of the growing US market for biofuels and offset the cost of rising foods imports.
Wall Street Journal:
- DoubleClick’s(DCLK) potential buyers now include Google Inc.(GOOG), intensifying a growing battle for the profitable online advertising brokering business.
- Policies at Exxon Mobil(XOM), Chevron(CVX), ConocoPhillips(COP) and other oil companies make it harder for motorists to find ethanol readily at gasoline stations. Exxon’s standard contract with stations bars them from buying fuel from anybody else and the company doesn’t sell E85, ConocoPhillips doesn’t allow E85 sales under the covered canopy where gasoline is sold, while Chevron’s agreement with franchisees appears to discourage selling E85 on the main station island.
- US Democrats are under increased pressure to show they can achieve change after dozens of initiatives didn’t make much headway.
- American Intl. Group(AIG) CEO Sullivan plans to retain the entrepreneurial spirit fostered at the company by Maurice “Hank” Greenberg while improving oversight.
- Tribune Co.(TRB), owner of the Chicago Tribune and LA Times, accepted a takeover offer from billionaire investor Sam Zell.
NY Times:
- Genetic tests that reveal if people share common ancestors are attracting customers interested in tracing their family genealogy.
- Darfur immigrants in the US are choosing to live in Indiana and other Midwestern states instead of metropolitan areas.
- More than 1,000 potential contestants have expressed interest in vying for an award of more than $10 million to build a commercially viable car that can travel 100 miles on a gallon of gasoline.
Forbes.com:
- After a seven-year run "value" stocks are pricier than ever. When Jeremy Grantham, chairman of GMO, says that, it’s time to think about buying "growth" stocks instead.
Financial Times:
- Over 20 US fund managers overseeing more than $55 billion in investments want more transparency in US corporate political spending ahead of the 2008 presidential election.
- Saudi Arabian billionaire Prince Alwaleed bin Talal said the US is blocking Arab investment in its transportation industries because it’s “obsessed” with the Sept. 11 terrorist attacks.
Frankfurter Allgemeine Zeitung:
- German Chancellor Angela Merkel urged Iran and Syria to avoid pursuing paths of isolation in the Middle East and said that a nuclear-armed Iran would be “unaccecptable.”
Al-Rai Al-Aam:
- Kuwait’s budget for this fiscal year forecasts revenue of $28.8 billion based on an average oil price of $36 a barrel.
ISM Manufacturing Still Shows Expansion, Prices Paid Above Estimates
- ISM Manufacturing for March fell to 50.9 versus estimates of 51.4 and a reading of 52.3 in February.
- ISM Prices Paid for March rose to 65.5 versus estimates of 58.5 and 59.0 in February.
- ISM Prices Paid for March rose to 65.5 versus estimates of 58.5 and 59.0 in February.
BOTTOM LINE: Manufacturing growth in the US slowed in March and an index of costs rose, Bloomberg reported. However, readings above 50.0 indicate expansion. The New Orders component of the index fell to 51.6 versus 54.9 the prior month. In a sign that inventory de-stocking may be subsiding, the March Chicago PMI, released on Friday, rose the most in 39 years and the New Orders component soared the most in US history. I continue to believe the manufacturing downturn has run its course and that overall activity is now improving. Inventory rebuilding should begin adding to economic growth next quarter.
Sunday, April 01, 2007
Monday Watch
Weekend Headlines
Bloomberg:
- Ceridian Corp.(CEN) shares rose after a report that buyout firms Bain Capital LLC and Blackstone Group LP are in talks to acquire the provider of human-resources and payroll services.
- French presidential contender Nicolas Sarkozy said if elected in May he will instruct his finance minister to seek a European Union accord against “speculation” by hedge funds. Sarkozy repeated criticism of European Central Bank President Jean-Claude Trichet for allowing the euro to appreciate against other countries, damaging French competitiveness. “It can’t go on any more,” he said. “We didn’t make the euro so that we can’t make any airplanes.”
- China’s commerce ministry said US tariffs on imports of coated paper from the nation are unacceptable and it reserves the right to take “necessary” action.
- Nestle SA’s Purina Pet Care became the third pet-food manufacturer to pull some of its products yesterday after learning it had received contaminated ingredients tied to a recall that has killed at least 16 animals.
- Merck & Co.(MRK) won US approval to sell Janumet, the first pill to treat type-2 diabetes by targeting all causes of the disease.
- Posco Power, wholly-owned by Posco, the world’s third-largest steelmaker, plans to spend $239 million to build a fuel cell power plant in Pohang, South Korea.
- Bankers are salivating over about $2 billion of fees from leveraged buyouts in the first quarter, and that’s just a fraction of what they’re assured of earning in the busiest year so far for mergers and acquisitions.
- The Reserve Bank of India will probably keep rates unchanged in its next monetary policy announcement on April 24 after the Mumbai-based bank unexpectedly raised its key overnight lending rate and reserve requirement for lenders on March 30.
- The Tankan Survey, Japan’s most closely watched gauge of business sentiment, showed manufacturer confidence fell to 23 points in March from 25 in December, the Bank of Japan said.
- Corn prices are falling the maximum daily limit allowed by the Chicago Board of Trade after a government survey showed US farmers plan to sow 15% more grain this spring, the most since 1944 and above analysts’ estimates. Corn futures for May delivery fell 20 cents, or 5.3%, to $3.545 a bushel on the Chicago Board of Trade, the second day of limit losses. Prices have plunged 19% from their February 26 high of $4.50/bushel.
- China National Petroleum Corp., the nation's biggest oil company, said production from offshore fields may rise 300% within three years, partly on discoveries of new deposits.
- China's manufacturing activity rose at a slower pace in March as companies cut output and orders fell, according to a survey of purchasing managers published by CLSA Asia-Pacific Markets.
Wall Street Journal:
- General Motors Corp.(GM) is studying selling in the US mini cars capable of getting 50 miles of gasoline to the gallon, citing a company executive. The company will show three different models of mini cars, which are smaller than sub-compact cars like GM’s Chevrolet Aveo, at the NY auto show on April 4.
- AirTran Holdings(AAI) is likely to increase its cash-and-stock takeover offer for discount carrier Midwest Air Group(MEH) by 13%.
Wired:
- Our 10th annual list of the most innovative companies in the world.
NY Times:
- Shock radio jock Howard Stern has been plugging contestant Sanjaya Malakar to win “American Idol,” Fox’s music talent show, as a way to derail the top-rated television program. Stern said he hoped to ruin the talent show and destroy its popularity by promoting the not-so-capable Malakar.
- Mobile phones in the US will soon be able to read special bar codes on buildings and products that will generate videos, pictures or text on device display screens.
- Gus Sansone has not had to pay an electricity bill in five years, thanks to the 35-mile-an-hour wind gusts that whip past his house on the high desert of San Bernardino County, Calif.
- Kohlberg Kravis Roberts is close to a deal to buy First Data Corp.(FDC) for more than $20 billion.
LA Times:
- Northrop Grumman Corp.(NOC), the third-largest US defense contractor, has been expanding into information and services businesses in anticipation of a decline in US government spending on military and defense programs.
NY Post:
- New York Mayor Michael Bloomberg is the city’s richest person with an estimated wealth of $13.6 billion, citing Fortune magazine. Carl Icahn is second at more than $13 billion.
Newsweek:
- Saudi Arabia’s King Abdullah warned Iranian President Mahmoud Ahmadinejad when he recently visited the kingdom about the consequences of Iran pursuing its uranium enrichment program.
Washington Post:
- Sirius Satellite Radio’s(SIRI) proposed purchase of XM Satellite Radio Holdings(XMSR) faces opposition from broadcasters and a consumer group who say it would mean higher prices.
Institutional Investor.com:
- Global hedge fund assets have surged 30% to $2.079 trillion with three-fourths of that amount managed by the world’s largest hedge funds, according to HedgeFund Intelligence.
Chicago Tribune:
- Illinois Governor Rod Blagojevich proposed increasing taxes on business by another $1 billion, citing a Blagojevich spokeswoman. Blagojevich’s business levy is aimed at increasing education funding and enacting a health-care coverage plan.
AP:
- Democratic House Speaker Nancy Pelosi will tell Syrian officials during her trip to Damascus this week that Israel will agree to peace talks if Syria stops its support of Palestinian militants. On March 30, White House spokesman Dana Perino denounced Pelosi’s visit to Syria as a “really bad idea” and said “someone should take a step back and think about the message that it sends and the message that it send to our allies.”
EE Times:
- The total market for commercial solar cell production equipment will grow from revenues of $1.2 billion in 2006 to $4.5 billion in 2010, according to The Information Network, a New Tripoli, Penn.-based market research company.
Financial Times:
- Private equity deals are more likely to add jobs at affected companies rather than reduce them. An analysis of the 30 biggest transactions conducted between 2003 and 2004 showed that the total number of jobs at those companies rose 25%.
- Three-quarters of loans to junk-rated US companies are provided by hedge funds and other non-bank lenders.
- Internet advertising will overtake worldwide radio advertising in 2008, citing media buyer Zenith Optimedia.
AFP:
- French officials are investigating vandalism at a Jewish cemetery in Lille, Northern France, in which 51 tombstones were broken or knocked over. Anti-Semitic attacks in France rose by 45% between 2005-2006.
Welt am Sonntag:
- DaimlerChrysler AG(DCX) may sell its money-losing Chrysler unit for between $6 billion and $9 billion, which is more than initially estimated.
South China Morning Post:
- The joint venture between MGM Mirage(MGM) and Pansy Ho is planning to develop its second casino in Macau on a 900,000 square foot site along the city’s Cotai Strip.
Al-Hayat:
- Trade between Germany and Arab countries grew 34% in 2006 to $45 billion, citing a report by the Arab-German Chamber of Commerce.
Weekend Recommendations
Barron's:
- Made positive comments on (BRCM), (WYE), (ABY), (BOW) and (WLT).
- Made negative comments on (FMD).
Citigroup:
- Reiterated Buy on Micron Technology(MU). Despite an expected shortfall relative to published consensus, we have increased conviction in our global DRAM upgrade.
Morgan Stanley:
- Reiterated Overweight on Merck(MRK), target $53.
Night Trading
Asian indices are +.25% to +.50% on average.
S&P 500 indicated +.11%.
NASDAQ 100 indicated +.08%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Conference Calendar
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/Estimate
- (AWI)/.01
Upcoming Splits
- (BBD) 2-for-1
- (BWS) 2-for-1
- (NKE) 2-for-1
Economic Releases
10:00 am EST
- ISM Manufacturing for March is estimated to fall to 51.1 versus 52.3 in February.
- ISM Prices Paid for March is estimated to fall to 58.5 versus 59.0 in February.
Bloomberg:
- Ceridian Corp.(CEN) shares rose after a report that buyout firms Bain Capital LLC and Blackstone Group LP are in talks to acquire the provider of human-resources and payroll services.
- French presidential contender Nicolas Sarkozy said if elected in May he will instruct his finance minister to seek a European Union accord against “speculation” by hedge funds. Sarkozy repeated criticism of European Central Bank President Jean-Claude Trichet for allowing the euro to appreciate against other countries, damaging French competitiveness. “It can’t go on any more,” he said. “We didn’t make the euro so that we can’t make any airplanes.”
- China’s commerce ministry said US tariffs on imports of coated paper from the nation are unacceptable and it reserves the right to take “necessary” action.
- Nestle SA’s Purina Pet Care became the third pet-food manufacturer to pull some of its products yesterday after learning it had received contaminated ingredients tied to a recall that has killed at least 16 animals.
- Merck & Co.(MRK) won US approval to sell Janumet, the first pill to treat type-2 diabetes by targeting all causes of the disease.
- Posco Power, wholly-owned by Posco, the world’s third-largest steelmaker, plans to spend $239 million to build a fuel cell power plant in Pohang, South Korea.
- Bankers are salivating over about $2 billion of fees from leveraged buyouts in the first quarter, and that’s just a fraction of what they’re assured of earning in the busiest year so far for mergers and acquisitions.
- The Reserve Bank of India will probably keep rates unchanged in its next monetary policy announcement on April 24 after the Mumbai-based bank unexpectedly raised its key overnight lending rate and reserve requirement for lenders on March 30.
- The Tankan Survey, Japan’s most closely watched gauge of business sentiment, showed manufacturer confidence fell to 23 points in March from 25 in December, the Bank of Japan said.
- Corn prices are falling the maximum daily limit allowed by the Chicago Board of Trade after a government survey showed US farmers plan to sow 15% more grain this spring, the most since 1944 and above analysts’ estimates. Corn futures for May delivery fell 20 cents, or 5.3%, to $3.545 a bushel on the Chicago Board of Trade, the second day of limit losses. Prices have plunged 19% from their February 26 high of $4.50/bushel.
- China National Petroleum Corp., the nation's biggest oil company, said production from offshore fields may rise 300% within three years, partly on discoveries of new deposits.
- China's manufacturing activity rose at a slower pace in March as companies cut output and orders fell, according to a survey of purchasing managers published by CLSA Asia-Pacific Markets.
Wall Street Journal:
- General Motors Corp.(GM) is studying selling in the US mini cars capable of getting 50 miles of gasoline to the gallon, citing a company executive. The company will show three different models of mini cars, which are smaller than sub-compact cars like GM’s Chevrolet Aveo, at the NY auto show on April 4.
- AirTran Holdings(AAI) is likely to increase its cash-and-stock takeover offer for discount carrier Midwest Air Group(MEH) by 13%.
Wired:
- Our 10th annual list of the most innovative companies in the world.
NY Times:
- Shock radio jock Howard Stern has been plugging contestant Sanjaya Malakar to win “American Idol,” Fox’s music talent show, as a way to derail the top-rated television program. Stern said he hoped to ruin the talent show and destroy its popularity by promoting the not-so-capable Malakar.
- Mobile phones in the US will soon be able to read special bar codes on buildings and products that will generate videos, pictures or text on device display screens.
- Gus Sansone has not had to pay an electricity bill in five years, thanks to the 35-mile-an-hour wind gusts that whip past his house on the high desert of San Bernardino County, Calif.
- Kohlberg Kravis Roberts is close to a deal to buy First Data Corp.(FDC) for more than $20 billion.
LA Times:
- Northrop Grumman Corp.(NOC), the third-largest US defense contractor, has been expanding into information and services businesses in anticipation of a decline in US government spending on military and defense programs.
NY Post:
- New York Mayor Michael Bloomberg is the city’s richest person with an estimated wealth of $13.6 billion, citing Fortune magazine. Carl Icahn is second at more than $13 billion.
Newsweek:
- Saudi Arabia’s King Abdullah warned Iranian President Mahmoud Ahmadinejad when he recently visited the kingdom about the consequences of Iran pursuing its uranium enrichment program.
Washington Post:
- Sirius Satellite Radio’s(SIRI) proposed purchase of XM Satellite Radio Holdings(XMSR) faces opposition from broadcasters and a consumer group who say it would mean higher prices.
Institutional Investor.com:
- Global hedge fund assets have surged 30% to $2.079 trillion with three-fourths of that amount managed by the world’s largest hedge funds, according to HedgeFund Intelligence.
Chicago Tribune:
- Illinois Governor Rod Blagojevich proposed increasing taxes on business by another $1 billion, citing a Blagojevich spokeswoman. Blagojevich’s business levy is aimed at increasing education funding and enacting a health-care coverage plan.
AP:
- Democratic House Speaker Nancy Pelosi will tell Syrian officials during her trip to Damascus this week that Israel will agree to peace talks if Syria stops its support of Palestinian militants. On March 30, White House spokesman Dana Perino denounced Pelosi’s visit to Syria as a “really bad idea” and said “someone should take a step back and think about the message that it sends and the message that it send to our allies.”
EE Times:
- The total market for commercial solar cell production equipment will grow from revenues of $1.2 billion in 2006 to $4.5 billion in 2010, according to The Information Network, a New Tripoli, Penn.-based market research company.
Financial Times:
- Private equity deals are more likely to add jobs at affected companies rather than reduce them. An analysis of the 30 biggest transactions conducted between 2003 and 2004 showed that the total number of jobs at those companies rose 25%.
- Three-quarters of loans to junk-rated US companies are provided by hedge funds and other non-bank lenders.
- Internet advertising will overtake worldwide radio advertising in 2008, citing media buyer Zenith Optimedia.
AFP:
- French officials are investigating vandalism at a Jewish cemetery in Lille, Northern France, in which 51 tombstones were broken or knocked over. Anti-Semitic attacks in France rose by 45% between 2005-2006.
Welt am Sonntag:
- DaimlerChrysler AG(DCX) may sell its money-losing Chrysler unit for between $6 billion and $9 billion, which is more than initially estimated.
South China Morning Post:
- The joint venture between MGM Mirage(MGM) and Pansy Ho is planning to develop its second casino in Macau on a 900,000 square foot site along the city’s Cotai Strip.
Al-Hayat:
- Trade between Germany and Arab countries grew 34% in 2006 to $45 billion, citing a report by the Arab-German Chamber of Commerce.
Weekend Recommendations
Barron's:
- Made positive comments on (BRCM), (WYE), (ABY), (BOW) and (WLT).
- Made negative comments on (FMD).
Citigroup:
- Reiterated Buy on Micron Technology(MU). Despite an expected shortfall relative to published consensus, we have increased conviction in our global DRAM upgrade.
Morgan Stanley:
- Reiterated Overweight on Merck(MRK), target $53.
Night Trading
Asian indices are +.25% to +.50% on average.
S&P 500 indicated +.11%.
NASDAQ 100 indicated +.08%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Conference Calendar
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/Estimate
- (AWI)/.01
Upcoming Splits
- (BBD) 2-for-1
- (BWS) 2-for-1
- (NKE) 2-for-1
Economic Releases
10:00 am EST
- ISM Manufacturing for March is estimated to fall to 51.1 versus 52.3 in February.
- ISM Prices Paid for March is estimated to fall to 58.5 versus 59.0 in February.
BOTTOM LINE: Asian Indices are mostly higher, boosted by automaker and technology shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 75% net long heading into the week.
Weekly Outlook
Click here for The Week Ahead by Reuters
Click here for Stocks in Focus for Monday by MarketWatch
There are a number of economic reports of note and some significant corporate earnings reports scheduled for release this week.
Economic reports for the week include:
Mon. - ISM Manufacturing, ISM Prices Paid
Tues. - Pending Home Sales, Total Vehicle Sales, weekly retail sales
Wed. - weekly MBA Mortgage Applications, weekly EIA energy inventory data, Challenger Job Cuts, ADP Employment Change, Factory Orders, ISM Non-Manufacturing
Thur. - Initial Jobless Claims
Fri. - Change in Non-farm Payrolls, Unemployment Rate, Average Hourly Earnings, Wholesale Inventories, Consumer Credit
Some of the more noteworthy companies that release quarterly earnings this week are:
Mon. - Armstrong World Industries(AWI)
Tues. - Intl. Speedway(ISCA), Shuffle Master(SHFL)
Wed. - Acuity Brands(AYI), AES Corp.(AES), Best Buy(BBY), Circuit City(CC), Delta & Pine Land(DLP), Micron Technology(MU), Monsanto(MON)
Thur. - American Greetings(AM), Constellation Brands(STZ), Immucor(BLUD), Pier 1(PIR), World Wrestling(WWE)
Fri. - None of note
Other events that have market-moving potential this week include:
Mon. - Howard Weil Energy Conference, Fed’s Poole speaking
Tue. - Howard Weil Energy Conference
Wed. - Morgan Stanley Global Automotive Conference, Bank of America Mini Healthcare Conference, Howard Weil Energy Conference, Prudential Metals & Mining Conference, Bank of England Policy Meeting
Thur. - Howard Weil Energy Conference, Morgan Stanley Global Automotive Conference
Fri. - None of note
Click here for Stocks in Focus for Monday by MarketWatch
There are a number of economic reports of note and some significant corporate earnings reports scheduled for release this week.
Economic reports for the week include:
Mon. - ISM Manufacturing, ISM Prices Paid
Tues. - Pending Home Sales, Total Vehicle Sales, weekly retail sales
Wed. - weekly MBA Mortgage Applications, weekly EIA energy inventory data, Challenger Job Cuts, ADP Employment Change, Factory Orders, ISM Non-Manufacturing
Thur. - Initial Jobless Claims
Fri. - Change in Non-farm Payrolls, Unemployment Rate, Average Hourly Earnings, Wholesale Inventories, Consumer Credit
Some of the more noteworthy companies that release quarterly earnings this week are:
Mon. - Armstrong World Industries(AWI)
Tues. - Intl. Speedway(ISCA), Shuffle Master(SHFL)
Wed. - Acuity Brands(AYI), AES Corp.(AES), Best Buy(BBY), Circuit City(CC), Delta & Pine Land(DLP), Micron Technology(MU), Monsanto(MON)
Thur. - American Greetings(AM), Constellation Brands(STZ), Immucor(BLUD), Pier 1(PIR), World Wrestling(WWE)
Fri. - None of note
Other events that have market-moving potential this week include:
Mon. - Howard Weil Energy Conference, Fed’s Poole speaking
Tue. - Howard Weil Energy Conference
Wed. - Morgan Stanley Global Automotive Conference, Bank of America Mini Healthcare Conference, Howard Weil Energy Conference, Prudential Metals & Mining Conference, Bank of England Policy Meeting
Thur. - Howard Weil Energy Conference, Morgan Stanley Global Automotive Conference
Fri. - None of note
BOTTOM LINE: I expect US stocks to finish the week modestly higher on better economic data, a firmer US dollar, buyout speculation, lower energy prices, short-covering and bargain-hunting. My trading indicators are giving mostly bullish signals and the Portfolio is 75% net long heading into the week.
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