The Week After the Shock – What to Expect

The week after the labor inflation shock should build upon itself in my opinion. Wiser minds are coming to the fore. Those voices that tend to shoot down the brave early souls willing to offer a different than popular opinion will start to join the group they’ve lambasted for so long. As my warning becomes drowned out by the crowd catching up to me, please do remember me. Rising interest rates are a threat to stocks and investments of all sorts, as the threshold to return on investment is raised and valuations are adjusted to compensate for a more difficult operating environment. This is why the next 3-6 months present a tough go for securities, and why stock-pickers capable of sifting through the broad swath of richly valued ideas should be in demand. Please do bookmark our blog.

Other recommended recent reports:

• Stocks Done in by Inflation Fear
• Gold Decline Based on False Premise

5-Day Chart S&P 500 - Yahoo Finance

Stocks took a hit last week after the Employment Cost Index showed 2.0% trailing twelve month rise in civilian compensation. It’s an inflation measure and one the Fed pays attention to. Enough said. Trailing twelve month stock gains have been shrinking all year long, and year-to-date results are at risk now.

Security	Last 5 Days	YTD	TTM
SPDR S&P 500 (NYSE: SPY)	-2.7%	+4.2%	+12.6%
SPDR Dow Jones (NYSE: DIA)	-2.7%	-0.5%	+5.4%
PowerShares QQQ (Nasdaq: QQQ)	-2.1%	+7.6%	+23.0%
SPDR Gold Shares (NYSE: GLD)	-1.1%	+7.1%	-1.6%
iPath S&P Crude Oil (NYSE: OIL)	-4.3%	+2.5%	-5.7%

The Week Ahead

The week ahead is light on economic data, but offers important service sector data in the PMI and ISM figures measuring it. Chain store sales will offer a look at consumer spending trends, but you’ll have to piece together the results of those retailers which report the data monthly. Take note that Wal-Mart (NYSE: WMT) is not one of those firms and it is the most important retailer in America, save maybe Amazon.com (Nasdaq: AMZN). We’ll also receive some manufacturing data this week.

THIS WEEK’S ECONOMIC REPORT SCHEDULE
Economic Data Point	Prior	Expected
MONDAY
Gallup US Consumer Spending	$91	$94 (Actual)
TD Ameritrade IMX	5.67	5.85
TUESDAY
PMI Services Index	61.0	61.0
Factory Orders	-0.5%	+0.6%
ISM Non-Mfg. Index	56.0	56.5
Gallup US ECI	-15
ICSC Weekly Store Sales	+0.2%
-Year-to-Year Pace	+4.6%
Redbook Store Sales	+3.0%
WEDNESDAY
Int’l Trade Balance	-$44.4 B	-$45.0 B
Gallup US Job Creation Index	27
Treasury Refunding Announcement
Mortgage Activity	-2.2%
EIA Petroleum Status
-Crude Oil Inventory	-3.7 MB
-Gasoline Inventory	+0.4 MB
THURSDAY
Chain Store Sales
Consumer Credit	$19.6 B	$18.3 B
Weekly Jobless Claims	302K	305K
Bloomberg Consumer Comfort	36.3
EIA Natural Gas Report	+88 bcf
FRIDAY
Productivity	-3.2%	+1.4%
-Unit Labor Costs	+5.7%	+1.6%
Wholesale Trade
-Inventories	+0.5%	+0.7%
-Sales

Corporate Earnings

The earnings schedule is still heavy and includes a ton of biotech names. I see those stocks coming under heavy pressure in the months ahead and recommend investors dump the names among them that are at great distance to earning a dime. I’ll write more on the subject soon, so stay tuned to my blog and columns elsewhere.

HIGHLIGHTED EPS REPORTS
Company	Ticker
MONDAY
Aastrom Biosciences	Nasdaq: ASTM
Accretive Health	Nasdaq: ACHI
Achillion Pharmaceuticals	Nasdaq: ACHN
Advanced Energy	Nasdaq: AEIS
American Homes 4 Rent	NYSE: AMH
American Int’l Group	NYSE: AIG
ANI Pharmaceuticals	Nasdaq: ANIP
Avis Budget Group	NYSE: CAR
BioDelivery Sciences	Nasdaq: BDSI
Biospecifics Technologies	Nasdaq: BSTC
BioTime	NYSE: BTX
Box Ships	NYSE: TEU
Cardinal Health	NYSE: CAH
Checkpoint Systems	NYSE: CKP
CNA Financial	NYSE: CNA
Coronado Biosciences	Nasdaq: CNDO
CTI BioPharma	Nasdaq: CTIC
Dendreon	Nasdaq: DNDN
ECA Marcellus Trust I	NYSE: ECT
Echo Therapeutics	Nasdaq: ECTE
Five9	Nasdaq: FIVN
Foster Wheeler	Nasdaq: FWLT
Frisch’s Restaurant	NYSE: FRS
Fuel Systems Solutions	Nasdaq: FSYS
FutureFuel	NYSE: FF
FX Energy	Nasdaq: FXEN
General Moly	NYSE: GMO
Halozyme Therapeutics	Nasdaq: HALO
Harvest Natural Resources	NYSE: HNR
Hillshire Brands	NYSE: HSH
Idenix Pharmaceuticals	Nasdaq: IDIX
InSite Vision	Nasdaq: INSV
Isis Pharmaceuticals	Nasdaq: ISIS
Jamba	Nasdaq: JMBA
Kate Spade	Nasdaq: KATE
Kona Grill	Nasdaq: KONA
Kosmos Energy	NYSE: KOS
Kronos Worldwide	NYSE: KRO
LeapFrog	NYSE: LF
LipoScience	Nasdaq: LPDX
Loews	NYSE: L
Malibu Boats	Nasdaq: MBUU
Marathon Oil	NYSE: MRO
Mcdermott Int’l	NYSE: MDR
MeetMe	Nasdaq: MEET
MELA Sciences	Nasdaq: MELA
Mesa Laboratories	Nasdaq: MLAB
Michael Kors	Nasdaq: KORS
Nature’s Sunshine	Nasdaq: NATR
Omega Flex	Nasdaq: OFLX
Omeros	Nasdaq: OMER
OraSure	Nasdaq: OSUR
PennyMac Financial	Nasdaq: PFSI
Pioneer Natural	NYSE: PXD
Protective Life	NYSE: PL
Puma Biotechnology	Nasdaq: PBYI
RadioShack	NYSE: RSH
Rand Logistics	Nasdaq: RLOG
Realogy	Nasdaq: RLGY
Retail Properties	Nasdaq: RPAI
RetailMeNot	Nasdaq: SALE
Rick’s Cabaret	Nasdaq: RICK
Rosetta Resources	Nasdaq: ROSE
Seaboard	NYSE: SEB
Senior Housing	NYSE: SNH
Solar Capital	Nasdaq: SLRC
StemCells	Nasdaq: STEM
Tenet Healthcare	NYSE: THC
Tessera Technologies	Nasdaq: TSRA
TheStreet	NYSE: TST
Texas Roadhouse	Nasdaq: TXRH
Trex	Nasdaq: TREX
Tsakos Energy Navigation	NYSE: TNP
ZipRealty	Nasdaq: ZIPR
TUESDAY
Activision Blizzard	Nasdaq: ATVI
Aqua America	NYSE: WTR
Archer Daniels Midland	NYSE: ADM
Blue Nile	Nasdaq: NILE
Cablevision	NYSE: CVC
Capital Senior Living	NYSE: CSU
CVS Caremark	NYSE: CVS
Discovery Laboratories	Nasdaq: DSCO
DryShips	Nasdaq: DRYS
EOG Resources	NYSE: EOG
First Solar	Nasdaq: FSLR
Gartner	NYSE: IT
Groupon	Nasdaq: GRPN
Icahn Enterprises	NYSE: IEP
Jazz Pharmaceuticals	Nasdaq: JAZZ
Johnson Outdoors	Nasdaq: JOUT
Liberty Media	Nasdaq: LMCA
Tidewater	NYSE: TDW
Vulcan Materials	NYSE: VMC
Walt Disney	NYSE: DIS
Zebra Tech	Nasdaq: ZBRA
Zillow	NYSE: Z
Zoetis	NYSE: ZTS
WEDNESDAY
Agrium	NYSE: AGU
Annaly Capital	NYSE: NLY
AOL	NYSE: AOL
Atmel	Nasdaq: ATML
BioScrip	Nasdaq: BIOS
Brookdale Senior Living	NYSE: BKD
Chesapeake Energy	NYSE: CHK
Clean Harbors	NYSE: CLH
Coeur Mining	NYSE: CDE
Corrections Corp. of America	NYSE: CXW
Coupons.com	Nasdaq: COUP
Devon Energy	NYSE: DVN
Diebold	NYSE: DBD
DISH Network	Nasdaq: DISH
Echelon	Nasdaq: ELON
FreightCar America	Nasdaq: RAIL
Hillenbrand	NYSE: HI
HollyFrontier	NYSE: HFC
MBIA	NYSE: MBI
Molson Coors	NYSE: TAP
Molycorp	NYSE: MCP
Parker Drilling	NYSE: PKD
Ralph Laruen	NYSE: RL
ReachLocal	Nasdaq: RLOC
Stifel Financial	NYSE: SF
Time Warner	NYSE: TWX
Transocean	NYSE: RIG
Zulily	NYSE: ZU
THURSDAY
AES	NYSE: AES
Agios Pharmaceuticals	Nasdaq: AGIO
Air Lease	NYSE: AL
Alnylam Pharmaceuticals	Nasdaq: ALNY
Anacor Pharmaceuticals	Nasdaq: ANAC
Bright Horizons	Nasdaq: BFAM
Brinker Int’l	NYSE: EAT
CBS	NYSE: CBS
Cowen Group	Nasdaq: COWN
Demand Media	NYSE: DMD
Duke Energy	NYSE: DUK
Fifth Street Finance	NYSE: FSC
Goodrich Petroleum	NYSE: GDP
Gramercy Property Trust	NYSE: GPT
Harman Int’l	NYSE: HAR
Kratos Defense	Nasdaq: KTOS
Lamar Advertising	Nasdaq: LAMR
Markel	NYSE: MKL
Orexigen Therapeutics	Nasdaq: OREX
Osiris Therapeutics	Nasdaq: OSIR
Rentrak	Nasdaq: RENT
Republic Airways	Nasdaq: RJET
Sempra Energy	NYSE: SRE
SolarCity	Nasdaq: SCTY
Teekay	NYSE: TK
U.S. Physical Therapy	Nasdaq: USPH
Volcano	Nasdaq: VOLC
Wendy’s	NYSE: WEN
XOMA	Nasdaq: XOMA
Zynga	Nasdaq: ZNGA
FRIDAY
Allianz SE	ALV.DE
Balchem	Nasdaq: BCPC
Beacon Roofing	Nasdaq: BECN
Biloxi Marsh Lands	Nasdaq: BLMC
Brookfield Asset Management	NYSE: BAM
Buckeye Partners	NYSE: BPL
Calgon Carbon	NYSE: CCC
Choice Hotels	NYSE: CHH
Clean Diesel	Nasdaq: CDTI
DiamondRock Hospitality	NYSE: DRH
Diversified Restaurant	Nasdaq: BAGR
E.W. Scripps	NYSE: SSP
Ebix	Nasdaq: EBIX
Ensign	Nasdaq: ENSG
Essent	Nasdaq: ESNT
Frank’s	NYSE: FI
HMS	Nasdaq: HMSY
LSB Industries	NYSE: LXU
Magnum Hunter	NYSE: MHR
Morgans Hotel	Nasdaq: MHGC
MTR Gaming	Nasdaq: MNTG
National Fuel Gas	NYSE: NFG
PDC Energy	Nasdaq: PDCE
Ply Gem	Nasdaq: PGEM
Progenics Pharmaecuticals	Nasdaq: PGNX
RadNet	Nasdaq: RDNT
SINA	Nasdaq: SINA
Sirona Dental	Nasdaq: SIRO
Sotheby’s	NYSE: BID
Speed Commerce	Nasdaq: SPDC
StoneMor Partners	Nasdaq: STON
Susser Holdings	Nasdaq: SUSS
Susser Petroleum	Nasdaq: SUSP
Tetra Tech	NYSE: TTI
Uranerz Energy	NYSE: URZ
Uranium Resources	Nasdaq: URRE

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.