Current Events: The rebound of June took a detour last week as the U.S. indexes struggled throughout most of the week, ultimately resulting in losses across all major U.S. indexes. The same worries that plagued the markets in early May still linger with just as much pessimism today over as Greek bailout indecisiveness and a weak U.S. economic recovery do not seem to be on a fast track to prosperous solutions.
What to Look for This Week
While investors will certainly keep an eye on the events occurring overseas, key economic announcements on housing and the current state of the American consumer will provide valuable signals on the health of the U.S. economy. For bullish investors to see a bounce back to June high's most likely positive signals from both the U.S. and Europe will be needed in order to produce a strong enough rally.
News Affecting the Markets
With Spain formally asking for help for its banking system and the Greek finance minister reportedly resigning just four days after taking office, the ongoing saga which is the Europe Union continues to hang like a dark cloud over U.S. stocks. Even with the recent increase in housing sales did little to boost the U.S. stock indexes as fears of default overseas continues to haunt antsy investors.
Smart Investing
Trend is Your Friend: You may have heard the phrase “the trend is your friend” before either on the news or when reading a financial article of some sort. But what exactly does this mean? One standard definition of an uptrend is a succession if higher highs and higher lows. The trend can be considered intact until a previous reaction low point is broken. A violation of this condition serves as a warning signal that the trend may be over. It should be emphasized, however, that the disruption of the pattern of higher highs and higher lows (or lower highs and lower lows) should be viewed as a clue, not a conclusive indicator, of a possible long-term trend reversal. This simple, easy to implement indicator is powerful, however, as with most indicators use more than just this as an ultimate determent of your decision to enter, exit, or hold a position.
Earnings for the Week
Monday: Apollo Group Inc (APOL) {After the close}
Tuesday: H and R Block Inc (HRB) {After the close}, LDK Solar Co Ltd (LDK)
Wednesday: Commercial Metals Co (CMC), General Mills Inc (GIS), Lennar Corp (LEN), McCormick & Company Inc (MKC), Monsanto Co (MON), Paychex Inc (PAYX) {After the close}, Whirlpool Corp (WHR)
Thursday: Accenture PLC (ACN), Family Dollar Stores Inc (FDO), Nike Inc (NKE) {After the close}, Rosetta Genomics Ltd (ROSG), Shaw Group Inc (SHAW), Smith & Wesson Holding Corp (SWHC), TIBCO Software Inc (TIBX)
Friday: Constellation Brands Inc (STZ), Finish Line Inc (FINL), KB Home (KBH)
* Earnings dates and times are subject to change
Economic Data this Week
Monday
New Home Sales @ 10:00 AM for May (Act. = 369K)
Tuesday
Case-Shiller 20-city Index @ 9:00 AM for April (Est. = -2.5%, Prior = -2.6%)
Consumer Confidence @ 10:00 AM for June (Est. = 63.0 to 64.0, Prior = 64.9)
Wednesday
MBA Mortgage Index @ 7:00 AM for 06/23 (Est. = n/a, Prior = -0.8%)
Durable Orders @ 7:30 AM for May (Est. = 0.5% to 1.0%, Prior = 0.0%)
Pending Homes @ 10:00 AM for May (Est. = 0.5% to 1.0%, Prior = -5.5%)
Crude Oil Inventories @ 10:30 AM for 06/23 (Est. = n/a, Prior = 2.861M)
Thursday
Initial Claims @ 8:30 AM for 06/23 (Est. = 385K, Prior = 387K)
Continuing Claims @ 8:30 AM for 06/16 (Est. = 3,275K to 3,283K, Prior = 3,299K)
Friday
Personal Income @ 8:30 AM for May (Est. = 0.0% to 0.1%, Prior = 0.2%)
Personal Spending @ 8:30 AM for May (Est. = 0.1%, Prior = 0.3%)
Chicago PMI @ 9:45 AM for June (Est. = 52.0 to 53.0, Prior = 52.7)
Michigan Sentiment @ 9:55 AM for June (Est. = 73.0 to 74.1, Prior = 74.1)
No comments:
Post a Comment