THIS WEEK: Stocks Getting Cold Feet
The shortened week is light on economic data but earnings season is picking up. However, the weather might play a greater role than anything else this week, as investors begin to look toward the meaningful impact of what sure looks like a cold, wet winter.
Stocks have had a slow start to 2014, as we predicted they would in our New Year’s Eve article, Sell Stocks on Likely January Ill-Effects. Earlier this morning, we indicated our expectations that the week would likely bring more drift for stocks.
Economic Events
The week is light on economic data, with an abnormal focus on Thursday. Because of the holiday this Monday, some reports are being pushed to that day. Existing Home Sales and Leading Economic Indicators are likely to weigh heaviest, in my view. Not much is expected from either report this week, with slight growth forecast for the LEI and stagnation seen for home sales. Anything worse than this means probably a point or two lower for stocks this week.
Investors will also want to pay attention to the draw from natural gas inventories, though next week’s figures should show the bigger draw. The especially cold and broad reaching winter is threatening to deplete natural gas reserves, and that could mean significantly higher electric bills for already strapped consumers and tightly operating businesses. It’s an economic drag folks, and something that will garner increasing attention should the weather hold.
Corporate Events
Earnings season is upon us, with major reports scheduled this week. I suggest investors focus on the reports of IBM (NYSE: IBM) and Microsoft (Nasdaq: MSFT) for a read on the economy. Each of these is tied to business spending, but each also has company specific issues to manage today. Microsoft is also going to offer some insight into the questionable consumer, as will Starbucks (Nasdaq: SBUX) and McDonald’s (NYSE: MCD) this week. S&P 500 top performer Netflix (Nasdaq: NFLX) reports this week as well, and boy does it have a lot of paper profits built in from 2013 at stake.
Recent reports you might find interesting:
Real Estate Stock Outlook
Buy Verizon on Nice EPS Setup and Fantastic Valuation
Microsoft’s EPS Facing Whisper Number Challenge
Bank of America (NYSE: BAC) Must Exorcise Its Demons
If you found this report valuable, please do follow this column to receive it regularly.
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.
This Week
Index ETF
|
YTD
|
Trailing 12-M
|
SPDR S&P 500 (NYSE: SPY)
|
-0.6%
|
+23.8%
|
SPDR Dow Jones (NYSE: DIA)
|
-0.8%
|
+20.6%
|
PowerShares QQQ (Nasdaq: QQQ)
|
-0.1%
|
+31.0%
|
Stocks have had a slow start to 2014, as we predicted they would in our New Year’s Eve article, Sell Stocks on Likely January Ill-Effects. Earlier this morning, we indicated our expectations that the week would likely bring more drift for stocks.
Economic Events
THIS WEEK’S ECONOMIC REPORT
SCHEDULE
|
||
Economic Data Point
|
Prior
|
Expected
|
MONDAY
|
|
|
MLK Day
|
|
|
+7.7%
|
+7.6%
|
|
|
|
|
World Future Energy Summit
|
|
|
TUESDAY
|
|
|
-1.0%
|
|
|
-Year-to-Year Pace
|
+1.3%
|
|
+2.9%
|
|
|
|
|
|
US CFTC on Swap Oversight
|
|
|
WEDNESDAY
|
|
|
|
|
|
|
|
|
+11.9%
|
|
|
|
|
|
Bank of Canada Monetary
Policy
|
|
|
THURSDAY
|
|
|
54.4
|
55.0
|
|
4.9 M
|
4.9 M
|
|
+0.8%
|
+0.1%
|
|
326K
|
330K
|
|
+0.5%
|
+0.4%
|
|
-31
|
|
|
-287 Bcf
|
|
|
-7.7 M B
|
|
|
-Crude Oil Inventory
|
+6.2 M B
|
|
-Gasoline Inventory
|
|
|
FRIDAY
|
|
|
|
|
The week is light on economic data, with an abnormal focus on Thursday. Because of the holiday this Monday, some reports are being pushed to that day. Existing Home Sales and Leading Economic Indicators are likely to weigh heaviest, in my view. Not much is expected from either report this week, with slight growth forecast for the LEI and stagnation seen for home sales. Anything worse than this means probably a point or two lower for stocks this week.
Investors will also want to pay attention to the draw from natural gas inventories, though next week’s figures should show the bigger draw. The especially cold and broad reaching winter is threatening to deplete natural gas reserves, and that could mean significantly higher electric bills for already strapped consumers and tightly operating businesses. It’s an economic drag folks, and something that will garner increasing attention should the weather hold.
Corporate Events
Earnings season is upon us, with major reports scheduled this week. I suggest investors focus on the reports of IBM (NYSE: IBM) and Microsoft (Nasdaq: MSFT) for a read on the economy. Each of these is tied to business spending, but each also has company specific issues to manage today. Microsoft is also going to offer some insight into the questionable consumer, as will Starbucks (Nasdaq: SBUX) and McDonald’s (NYSE: MCD) this week. S&P 500 top performer Netflix (Nasdaq: NFLX) reports this week as well, and boy does it have a lot of paper profits built in from 2013 at stake.
HIGHLIGHTED EPS REPORTS
|
|
Company
|
Ticker
|
MONDAY
|
|
MLK Day
|
|
TUESDAY
|
|
Advanced Micro Devices
|
NYSE: AMD
|
Baker Hughes
|
NYSE: BHI
|
Cree
|
Nasdaq: CREE
|
Delta Air Lines
|
NYSE: DAL
|
Forest Laboratories
|
NYSE: FRX
|
Fulton Financial
|
Nasdaq: FULT
|
Halliburton
|
NYSE: HAL
|
Johnson & Johnson
|
NYSE: JNJ
|
LSI Corp.
|
NYSE: LSI
|
Petmed Express
|
Nasdaq: PETS
|
Regions Financial
|
NYSE: RF
|
Rockwell Collins
|
NYSE: COL
|
SAP
|
NYSE: SAP
|
Synovus Financial
|
NYSE: SNV
|
TD Ameritrade
|
Nasdaq: AMTD
|
Texas Instruments
|
NYSE: TXN
|
Travelers
|
NYSE: TRV
|
Unifi
|
NYSE: UFI
|
Unilever
|
NYSE: UL
|
Verizon
|
NYSE: VZ
|
Xilinx
|
Nasdaq: XLNX
|
WEDNESDAY
|
|
Abbott Laboratories
|
NYSE: ABT
|
Allegheny Technologies
|
NYSE: ATI
|
BancorpSouth
|
NYSE: BXS
|
Brinker International
|
NYSE: EAT
|
Coach
|
NYSE: COH
|
East West Bancorp
|
Nasdaq: EWBC
|
eBay
|
Nasdaq: EBAY
|
Ethan Allen Interiors
|
NYSE: ETH
|
F5 Networks
|
Nasdaq: FFIV
|
Fair Isaac
|
Nasdaq: FICO
|
Freeport-McMoRan
|
NYSE: FCX
|
General Dynamics
|
NYSE: GD
|
Jacobs Engineering
|
NYSE: JEC
|
Motorola Solutions
|
NYSE: MSI
|
Netflix
|
Nasdaq: NFLX
|
Noble Corporation
|
NYSE: NE
|
Norfolk Southern
|
NYSE: NSC
|
Northern Trust
|
Nasdaq: NTRS
|
SanDisk
|
Nasdaq: SNDK
|
Susquehanna Bancshares
|
Nasdaq: SUSQ
|
Teradyne
|
NYSE: TER
|
U.S. Bancorp
|
NYSE: USB
|
United Rentals
|
NYSE: URI
|
United Technologies
|
NYSE: UTX
|
Varian Medical
|
NYSE: VAR
|
Western Digital
|
NYSE: WDC
|
THURSDAY
|
|
AmerisourceBergen
|
NYSE: ABC
|
Baxter International
|
NYSE: BAX
|
Briggs & Stratton
|
NYSE: BGG
|
Cash America
|
NYSE: CSH
|
Celanese
|
NYSE: CE
|
Cypress Semiconductor
|
NYSE: CY
|
Discover Financial
|
NYSE: DFS
|
E*TRADE
|
Nasdaq: ETFC
|
Fairchild Semiconductor
|
NYSE: FCS
|
Fifth Third Bancorp
|
Nasdaq: FITB
|
Intuitive Surgical
|
Nasdaq: ISRG
|
J.B. Hunt
|
Nasdaq: JBHT
|
Janus Capital
|
NYSE: JNS
|
Johnson Controls
|
NYSE: JCI
|
Juniper Networks
|
Nasdaq: JNPR
|
KeyCorp
|
NYSE: KEY
|
KLA-Tencor
|
Nasdaq: KLAC
|
Lockheed Martin
|
NYSE: LMT
|
Matthews International
|
Nasdaq: MATW
|
McDonald’s
|
NYSE: MCD
|
MGIC Investment
|
NYSE: MTG
|
Microsoft
|
Nasdaq: MSFT
|
Popular
|
Nasdaq: BPOP
|
Precision Castparts
|
NYSE: PCP
|
Quality Systems
|
Nasdaq: QSII
|
ShoreTel
|
Nasdaq: SHOR
|
Southwest Airlines
|
NYSE: LUV
|
Starbucks
|
Nasdaq: SBUX
|
Strattec Security
|
Nasdaq: STRT
|
SVB Financial
|
Nasdaq: SIVB
|
Synaptics
|
Nasdaq: SYNA
|
Teledyne
|
NYSE: TDY
|
TESSCO
|
Nasdaq: TESS
|
Travelzoo
|
Nasdaq: TZOO
|
Union Pacific
|
NYSE: UNP
|
United Continental
|
NYSE: UAL
|
Uroplasty
|
NYSE: UPI
|
Western Alliance Bancorporation
|
NYSE: WAL
|
FRIDAY
|
|
Amcol International
|
NYSE: ACO
|
BancFirst
|
Nasdaq: BANF
|
Bristol-Myers Squibb
|
NYSE: BMY
|
Covidien
|
NYSE: COV
|
Enterprise Financial Services
|
Nasdaq: EFSC
|
First Niagara Financial
|
Nasdaq: FNFG
|
Honeywell
|
NYSE: HON
|
Kansas City Southern
|
NYSE: KSU
|
Kimberly-Clark
|
NYSE: KMB
|
Procter & Gamble
|
NYSE: PG
|
ResMed
|
NYSE: RMD
|
Stanley Black & Decker
|
NYSE: SWK
|
State Street
|
NYSE: STT
|
W.W. Grainger
|
NYSE: GWW
|
Xerox
|
NYSE: XRX
|
Recent reports you might find interesting:
Real Estate Stock Outlook
Buy Verizon on Nice EPS Setup and Fantastic Valuation
Microsoft’s EPS Facing Whisper Number Challenge
Bank of America (NYSE: BAC) Must Exorcise Its Demons
If you found this report valuable, please do follow this column to receive it regularly.
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-2014-Q1, Week-Ahead, Week-Ahead-2014
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