Sunday, July 31, 2005

Weekly Outlook

There are several important economic reports and some significant corporate earnings reports scheduled for release this week.

Economic reports for the week include:

Mon. - ISM Manufacturing, ISM Prices Paid, Pending Home Sales
Tues. - Personal Income, Personal Spending, PCE Deflator, Factory Orders, Total Vehicle Sales
Wed. - ISM Non-Manufacturing
Thur. - Initial Jobless Claims
Fri. - Unemployment Rate, Average Hourly Earnings, Change in Non-farm Payrolls, Consumer Credit

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

Mon. - Career Education(CECO), Goodyear Tire(GT), Proctor & Gamble(PG), Tyson Foods(TSN)
Tues. - Coach Inc.(COH), Comcast Corp(CMCSA), Emerson Electric(EMR), IAC/InterActiveCorp.(IACI), Sirius Satellite(SIRI), Transocean Inc.(RIG), Tyco International(TYC)
Wed. - CVS Corp.(CVS), Duke Energy(DUK), Electronic Data Systems(EDS), Time Warner(TWX)
Thur. - Gillette(G), Harrah's Entertainment(HET), Univision Communications(UVN)
Fri. - Cardinal Health(CAH), Nvidia Corp.(NVDA)

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

Mon. - RBC Capital Tech Conference
Tue. - RBC Capital Tech Conference, GM/F/DCX Sales Calls
Wed. - CSFB Electrical Equipment Conference, RBC Tech Conference
Thur. - CSFB Electrical Equipment Conference, RBC Tech Conference
Fri. - CSFB Electrical Equipment Conference

BOTTOM LINE: I expect US stocks to finish the week mixed as rising long-term rates and energy prices offset strong economic reports, positive earnings releases and short-covering. I continue to believe stocks are in a healthy period of consolidation before mounting another push higher. My trading indicators are still giving bullish signals and the Portfolio is 100% net long heading into the week.

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