Sunday, September 25, 2005

Weekly Outlook

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

Economic reports for the week include:

Mon. - Existing Home Sales
Tues. - New Home Sales, Consumer Confidence
Wed. - Durable Goods Orders
Thur. - Final 2Q GDP, Final GDP Price Index, Final 2Q Personal Consumption, Initial Jobless Claims, Help Wanted Index
Fri. - Personal Income, Personal Spending, PCE Deflator, Final Univ. of Mich. Consumer Confidence, Chicago Purchasing Manager

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

Mon. - Jabil Circuit(JBL), Micron Technology(MU), Walgreen Co.(WAG)
Tues. - Lennar Corp.(LEN), Paychex Inc.(PAYX)
Wed. - Redhat Inc.(RHAT)
Thur. - Family Dollar Stores(FDO)
Fri. - Doral Financial(DRL), Saks Inc.(SKS), Tommy Hilfiger(TOM)

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

Mon. - UBS Global Life Sciences Conference, Thomas Weisel Partners Consumer Conference, Fed’s Moskow speaks
Tue. - Merrill Lynch Global Power Conference, Cambridge Energy Research Global Power Summit, CSFB Chemicals Conference, UBS Global Life Sciences Conference
Wed. - Merrill Lynch Global Power Conference, UBS Global Life Sciences Conference, CSFB Chemicals Conference
Thur. - CSFB Global Mining Equip. Conference, UBS Global Life Sciences Conference
Fri. - None of note

BOTTOM LINE: I expect US stocks to finish the week mixed. Equities will likely rise early in the week as Hurricane Rita’s damage was not as bad as feared. However, concerns regarding economic growth and earnings will likely pressure shares toward week’s end. My trading indicators are giving mostly bearish signals and the Portfolio is 75% net long heading into the week.

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