This Week: Selling Syria

Congress is back in session this week, and just in time to take on the President’s proposal to use measured force against the Assad regime in Syria. The Senate is scheduled to vote on the issue Wednesday, but the President will be selling his plan to the American people Monday night in recorded interviews with each of the major networks’ news anchors. Then on Tuesday, he will address the nation directly on the issue. It appears this is a necessary step, if Congress is to vote in favor of force, a very unpopular action with a great many Americans. Otherwise this week, Apple (Nasdaq: AAPL) unveils its iPhone5S on Tuesday, giving the company an opportunity to reignite energy among Apple users and shareholders. On Thursday, Dell (Nasdaq: DELL) shareholders vote on Michael Dell’s plan to take the company private, just as shareholder activist Carl Icahn steps aside. The SEC will be taking up the issue of the recent Nasdaq blackout with the heads of the major exchanges. Finally, this week obviously includes September 11 and the annual somber memorial services and the security tension that comes with it.

Index ETF	Week Ending Sept. 6	Year-to-Date
SPDR S&P 500 (NYSE: SPY)	+1.5%	+16.8%
SPDR Dow Jones (NYSE: DIA)	+0.8%	+14.2%
PowerShares QQQ (Nasdaq: QQQ)	+1.9%	+18.5%

Stocks had a good week last week, even after all the discussion about Syria and another mixed review of the Employment Report. This week, a still hopeful market will place its bet on every rumor regarding the possibility of inaction against Syria, and then face reality as we near the close of the period, in this columnist’s opinion. That is because the idea of placing Syria’s chemical weapons in Russian hands, were it to acknowledge having them in the first place, reminds me of the failed and flawed Russian effort to have Iran’s nuclear program placed under its control. The plan is too full of holes, and frankly, it surprises me that the media is even entertaining the possibility of this occurring. The more I watch pundits and media discuss topics, the more I am reminded of a chicken I once watched run around without its head after being slaughtered. But the fools and the foolish open up opportunities for the discerning, and so we welcome their ignorance.

Economic Events

THIS WEEK’S ECONOMIC REPORT SCHEDULE
Economic Data Point	Prior	Expected
MONDAY
John Williams Speaks
Employment Trends Index	112.8	113.54
Consumer Credit Report	$13.8 B	$12.3 B
TUESDAY
NFIB Small Biz Optimism Index	94.1	95.0
ICSC Weekly Store Sales	-0.6%
-Year-to-Year Pace	+1.8%
Redbook Store Sales	+4.7%
Job Openings (JOLTS)	3.936 M	3.9275 M
Investor Movement Index	4.87
WEDNESDAY
Wholesale Trade (Inventory)	-0.2%	+0.3%
-Sales	+0.4%
Mortgage Activity	+1.3%
EIA Petroleum Status
-Crude Oil Inventory	-1.8 M
-Gasoline Inventory	-1.8 M
THURSDAY
Import & Export Prices (Imports)	-0.1%	+0.1%
-Exports	+0.2%	+0.5%
Bloomberg Consumer Comfort	-32.3
Weekly Jobless Claims	323 K	330 K
EIA Natural Gas Report	+58 Bcf
Treasury Budget	-$97.6 B
FRIDAY
Retail Sales	+0.2%	+0.5%
-Less Autos & Gas	+0.4%	+0.3%
Producer Price Index	+0.0%	+0.2%
-Core PPI	+0.1%	+0.1%
Consumer Sentiment	82.1	82.0
Business Inventories	+0.0%	+0.3%
-Sales	+0.2%

The economic schedule is backend heavy on the week, with monthly retail sales ominously waiting for the close of the period. Though, economists are looking for a decent uptick in sales less auto and gasoline. Recent indications have offered evidence of something else, so a negative surprise could be in the works.

The period includes several more employment data points, which despite last week’s heavy hitters on the subject, will carry weight. Weekly jobless claims continue to ease, and the week’s reports on general employment trends and job openings are expected to be favorable.

The mood of small businessmen has taken a while to turn, but it has been improving over time. It is expected to do so again this month, despite the onset of new healthcare costs for many small businesses.

Consumer sentiment gets a look-see this week, and there’s no arguing that consumers have taken a breather over the last month or two. Some pundits will point toward the many new electronic goods that are being introduced now as key catalysts to reignite consumer spending, and they might be right.

Corporate Events

We are looking toward Q3 now, but several companies still have to report for the last quarter. Among them are some important homebuilders, restaurants, food producers and retailers.

HIGHLIGHTED EPS REPORTS
Company	Ticker
MONDAY
Hovnanian	NYSE: HOV
Hi-Tech Pharmacal	Nasdaq: HITK
John Wiley & Sons	NYSE: JWA
General Finance	Nasdaq: GFN
Streamline Health Solutions	Nasdaq: STRM
L&L Energy	Nasdaq: LLEN
PVH Corp.	NYSE: PVH
Palo Alto Networks	Nasdaq: PANW
Pep Boys	NYSE: PBY
Majesco Entertainment	Nasdaq: COOL
Investors Real Estate Trust	Nasdaq: IRET
Five Below	Nasdaq: FIVE
Peregrine Pharmaceuticals	Nasdaq: PPHM
Flow International	Nasdaq: FLOW
HD Supply Holdings	Nasdaq: HDS
TUESDAY
McDonald’s	NYSE: MCD
Christopher & Banks	NYSE: CBK
AEP Industries	Nasdaq: AEPI
Triangle Petroleum	Nasdaq: TPLM
Lannett Company	NYSE: LCI
Oxford Industries	NYSE: OXM
Unilife	Nasdaq: UNIS
Coldwater Creek	Nasdaq: CWTR
Restoration Hardware	NYSE: RH
Miller Energy Resources	NYSE: MILL
WEDNESDAY
Men’s Wearhouse	NYSE: MW
Evolution Petroleum	NYSE: EPM
Vera Bradley	Nasdaq: VRA
THURSDAY
RF Industries	Nasdaq: RFIL
Brady	NYSE: BRC
Progressive	NYSE: PGR
NetSol Technologies	Nasdaq: NTWK
Kroger	NYSE: KR
TRC Companies	NYSE: TRR
Point360	Nasdaq: PTSX
Lakeland Industries	Nasdaq: LAKE
Marrone Bio Innovations	Nasdaq: MBII
Analogic	Nasdaq: ALOG
Cherokee	Nasdaq: CHKE
Ulta Salon	Nasdaq: ULTA
Crossroads Systems	Nasdaq: CRDS
United Natural Foods	Nasdaq: UNFI
LifeVantage	Nasdaq: LFVN
FRIDAY
Ocean Power Technologies	Nasdaq: OPTT
Comarco	Nasdaq: CMRO

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