Tuesday – A New Question is Being Posed
Stocks opened higher today, but after 10:00 AM reports showing a slower pace of new home sales and a drop off in consumer confidence, there seems to be a new question being posed. The Vanguard S&P 500 ETF (NYSE: VOO) is up about a half of a point despite the news. Find all the day’s reports here for your inspection.
Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.
Several economic reports are set for Tuesday’s schedule. The important but volatile Durable Goods Orders Report is scheduled for 8:30 AM release. There’s something interesting I want you to realize about durable goods order trends. While the month-to-month comparisons seem to show improvement most months, the long-term chart comparing yearly results show a slowing of improvement.
Economists expect durable goods orders rose 3.5% in February, based on Bloomberg’s survey. That compares against the decrease in orders in January, when they fell 5.2%. Excluding transportation goods, which carry high ticket prices and can skew the message, orders are expected to edge up just 0.7%, versus last month’s 1.9% increase.
The first of the week’s real estate data reaches the wire on Tuesday when Case Shiller reports on its Home Price Index. The 9:00 AM report covers the month of January. Economists expect the group’s 20-city seasonally adjusted index to show price increase of 1.0%, against December’s increase of 0.9%. Such news continues to support the real estate sector, but even the slightest sign of weakness would damage housing stocks, which some say are priced for perfection. New Home Sales data for February follows at 10:00 AM ET. Economists are expecting a slip in the annual pace of new home sales to 425K, against January’s pace of 437K.
The Conference Board reports on Consumer Confidence at 10:00 AM ET. Confidence has been improving since Washington D.C. got out of the way of the economy earlier this year. The data for February showed the Confidence Index rose sharply to 69.6, up more than 10 points from the prior month. According to Barron’s, the consensus expects a lower reading of 67.5 for March. Tuesday also offers the regular retail same-store sales data. Last week, the International Council of Shopping Centers (ICSC) showed week-to-week sales increased 1.4%. On a year-to-year basis, sales were marked up 2.3%. Each measure represented improvement against the prior week. As we near Easter, sales should be markedly higher.
The Richmond Federal Reserve Bank reports on regional manufacturing activity at 10:00 AM. Economists expect the bank’s index to show a slight drop to a reading of 5.5 for March, which would be down from 6.0 in February.
State Street (NYSE: STT) reports on Investor Confidence at 10:00 AM. Last month’s report showed that global investor confidence (or risk taking in institutional portfolios) increased due to a greater appetite in North America. The Global Index measured 94.8, and the North American Index reached 86.3.
Dallas Fed Bank President Richard Fisher is set to speak about U.S. monetary policy.
There’s a nuclear summit in Seoul, South Korea. It would make perfect sense for North Korea to do something provocative.
The U.S. Supreme Court will start talking about same-sex marriage.
In corporate news, Dupont (NYSE: DD) and Monsanto (NYSE: MON) are holding a conference call on a new and improved soybean. Look for analyst or investor meetings at United Parcel Service (NYSE: UPS) and General Cable (NYSE: BGC). A Delaware bankruptcy court considers whether to approve the $10.5 million sale of Pension Worldwide’s brokerage assets. The earnings slate highlights reports from SAIC (NYSE: SAI), Alexza Pharmaceuticals (Nasdaq: ALXA), Bacterin Int’l (Nasdaq: BONE), Landec (Nasdaq: LNDC), Luna Innovations (Nasdaq: LUNA), Children’s Place (Nasdaq: PLCE), China Gerui Advanced Materials Group (Nasdaq: CHOP), Digital Ally (Nasdaq: DGLY), Dover Saddlery (Nasdaq: DOVR), Envivio (Nasdaq: ENVI), Image Sensing Systems (Nasdaq: ISNS), Linktone (Nasdaq: LTON), Mattress Firm Holding (Nasdaq: MFRM), Metabolix (Nasdaq: MBLX), Neogen (Nasdaq: NEOG), Nupathe (Nasdaq: PATH) and more.
Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.
Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.
Several economic reports are set for Tuesday’s schedule. The important but volatile Durable Goods Orders Report is scheduled for 8:30 AM release. There’s something interesting I want you to realize about durable goods order trends. While the month-to-month comparisons seem to show improvement most months, the long-term chart comparing yearly results show a slowing of improvement.
Economists expect durable goods orders rose 3.5% in February, based on Bloomberg’s survey. That compares against the decrease in orders in January, when they fell 5.2%. Excluding transportation goods, which carry high ticket prices and can skew the message, orders are expected to edge up just 0.7%, versus last month’s 1.9% increase.
The first of the week’s real estate data reaches the wire on Tuesday when Case Shiller reports on its Home Price Index. The 9:00 AM report covers the month of January. Economists expect the group’s 20-city seasonally adjusted index to show price increase of 1.0%, against December’s increase of 0.9%. Such news continues to support the real estate sector, but even the slightest sign of weakness would damage housing stocks, which some say are priced for perfection. New Home Sales data for February follows at 10:00 AM ET. Economists are expecting a slip in the annual pace of new home sales to 425K, against January’s pace of 437K.
The Conference Board reports on Consumer Confidence at 10:00 AM ET. Confidence has been improving since Washington D.C. got out of the way of the economy earlier this year. The data for February showed the Confidence Index rose sharply to 69.6, up more than 10 points from the prior month. According to Barron’s, the consensus expects a lower reading of 67.5 for March. Tuesday also offers the regular retail same-store sales data. Last week, the International Council of Shopping Centers (ICSC) showed week-to-week sales increased 1.4%. On a year-to-year basis, sales were marked up 2.3%. Each measure represented improvement against the prior week. As we near Easter, sales should be markedly higher.
The Richmond Federal Reserve Bank reports on regional manufacturing activity at 10:00 AM. Economists expect the bank’s index to show a slight drop to a reading of 5.5 for March, which would be down from 6.0 in February.
State Street (NYSE: STT) reports on Investor Confidence at 10:00 AM. Last month’s report showed that global investor confidence (or risk taking in institutional portfolios) increased due to a greater appetite in North America. The Global Index measured 94.8, and the North American Index reached 86.3.
Dallas Fed Bank President Richard Fisher is set to speak about U.S. monetary policy.
There’s a nuclear summit in Seoul, South Korea. It would make perfect sense for North Korea to do something provocative.
The U.S. Supreme Court will start talking about same-sex marriage.
In corporate news, Dupont (NYSE: DD) and Monsanto (NYSE: MON) are holding a conference call on a new and improved soybean. Look for analyst or investor meetings at United Parcel Service (NYSE: UPS) and General Cable (NYSE: BGC). A Delaware bankruptcy court considers whether to approve the $10.5 million sale of Pension Worldwide’s brokerage assets. The earnings slate highlights reports from SAIC (NYSE: SAI), Alexza Pharmaceuticals (Nasdaq: ALXA), Bacterin Int’l (Nasdaq: BONE), Landec (Nasdaq: LNDC), Luna Innovations (Nasdaq: LUNA), Children’s Place (Nasdaq: PLCE), China Gerui Advanced Materials Group (Nasdaq: CHOP), Digital Ally (Nasdaq: DGLY), Dover Saddlery (Nasdaq: DOVR), Envivio (Nasdaq: ENVI), Image Sensing Systems (Nasdaq: ISNS), Linktone (Nasdaq: LTON), Mattress Firm Holding (Nasdaq: MFRM), Metabolix (Nasdaq: MBLX), Neogen (Nasdaq: NEOG), Nupathe (Nasdaq: PATH) and more.
Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.
Labels: Market-Outlook, Market-Outlook-2012-Q4, Wall-Street-Preview
posted by The Greek | 11:23 AM
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