October 15, 2011
Earnings reports, in particular from a handful of big banks, will draw investors’ attention next week. Tech giant Apple’s ( NASDAQ : AAPL) earnings are also due, the report arriving in the immediate aftermath of the untimely death of co-founder and long-time chief executive Steve Jobs . Industry leaders Bank of America (NYSE: BAC), Goldman Sachs (NYSE: GS), Citigroup (NYSE: C), Morgan Stanley (NYSE: MS) and Wells Fargo (NYSE: WFC) are all scheduled to report earnings. Each bank has its own story, none more compelling perhaps than Bank of America, which is facing problems on a number of fronts, not least backlash from customers angry about the bank’s plan to apply a $5 monthly fee for using debit cards. The rest, with the ever-dominant Goldman a likely exception, could be hampered by the difficult economy, which has dampened enthusiasm for the kind of big corporate deals for which these banks earn big fees. Apple’s new chief executive, Tim Cook , if he participates in the company’s earnings conference call, could face questions on the direction he intends to take Apple as competition in the consumer gadgets sector gets ever more intense. Earnings from bellwether companies IBM (NYSE: IBM) and Coca-Cola (NYSE: KO) are also due. Inflationary data comes out with the Producer Price Index released Tuesday and the Department of Labor’s September Consumer Price Index out Wednesday. The Federal Reserve has said repeatedly that inflation is a potential concern in the near future, but is not currently a high priority. Gas and food prices have leveled off somewhat since rising sharply earlier this year primarily due to catastrophic events worldwide. Data on September housing starts is due Wednesday. Many economists believe a broad and sustained economic recovery will begin with the housing sector. A glut of inventory and skittish buyers have hurt demand for months. Those dynamics aren’t likely to have changed in September. Existing home sales figures are due Thursday. Also on tap for next week is a report from European fiscal leaders on how to deal with Greek’s overwhelming debt. Any news out of Europe regarding the Greek debt crisis has drawn an immediate response from Wall Street , with good news prompting rallies and bad news prompting sell-offs. Originally posted here: Week Ahead: Bank Earnings and Inflation Data
Read the full article →
July 16, 2011
When they’re not fretting over the nation’s credit rating, investors next week will be dissecting second-quarter earnings reports and keeping tabs on key housing data. Corporate earnings have been strong throughout 2011, fueling stock market growth. But those results haven’t translated into support for the broader U.S. economy. Companies that stripped down during the worst of the recent financial crisis seem to be doing more with less. Consequently, with the economy still in flux, they’re in no hurry to expand their businesses and hire new employees. Shareholders have benefited and workers’ 401k programs are being replenished, but U.S. unemployment remains stubbornly high. Bellwether companies set to report their quarterly results next week, according to Reuters, include IBM (NYSE:IBM), Halliburton (NYSE:HAL), Charles Schwab ( NASDAQ :SCHW) and Gannett (NYSE:GCI) on Monday; Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), Bank of New York Mellon (NYSE:BK) Coca-Cola (NYSE:KO), Goldman Sachs (NYSE:GS), Johnson & Johnson (NYSE:JNJ) and Wells Fargo (NYSE:WFC) on Tuesday; American Express (NYSE:AXP), eBay (NASDAQ:EBAY), and Intel (NASDAQ:INTC) on Wednesday; Chubb Corp . (NYSE:CB), Microsoft (NASDAQ:MSFT), and Travelers (NYSE:TRV) on Thursday; and Caterpillar (NYSE:CAT) and General Electric (NYSE:GE) on Friday. On the housing front, the July NAHB/Wells Fargo Housing Market Index is due Monday. The June data on housing starts and permits is due Tuesday. The National Association of Realtors will release data on sales of existing homes on Wednesday. Housing data was dreadful throughout the spring and economists are hoping the numbers start to tick upward, although there’s no pressing reason to believe they will. Housing prices are still tumbling and inventories are still overflowing with foreclosed homes. Potential buyers are sitting on the sidelines wondering how low prices will fall before they should step in. It will be a slow week for economic data, but not barren. The Philadelphia Fed’s Business Outlook for July and the Conference Board’s Leading Economic Indicator for June are both due Thursday. Meanwhile, of course, the debate over raising the debt ceiling and how best to rein in future deficits will go on in Washington, D.C. View post: Week Ahead: A Flood Of 2Q Earnings
Read the full article →
