Weekly Newsletter November 25th - December 1st

Current Events: Bullish investors are hoping that the record-breaking shopping weekend witnessed bodes well for the U.S. markets. While fears of a fiscal cliff concern even the most bullish of investors, consumers seem unaffected by the stalemate between U.S. lawmakers on how to resolve the issue.

What to Look for This Week

A relatively light week for earnings awaits for all industries except one. The retail industry will catch the attention of investors this week as many shopping mall regulars are set to announce earnings. American Eagle, Ann Taylor, Tiffany & Co., and Express are a few of the popular retailers sure to capture some heavy trading volume.

News Affecting the Markets

3 million more Americans shopped on Black Friday this year compared to last as a record high 89 million shopped online and in stores, according to the survey conducted by BIG insight for the National Retail Federation released on Sunday. It was also a record four-day holiday weekend as 247 million Americans shopped in person and electronically, compared to the 226 million last year during the same period.

Smart Investing

A Shiny Investment: Diamonds have an intrinsic value. These gems come with numerous unique properties. Their objective and primary advantage lies in the reality that they are one of the hardest substances on earth, and they can last practically forever. Diamonds are very portable. With all their value, diamonds are easy to carry and conceal, even through the times of war. Diamonds are money, and they hold and carry their value in all parts of the world. Unlike any other asset, diamonds are not priced on a simple price-per-gram system. Instead, according to weight, carat, clarity, cut, color, and other parameters, their price is based on an international pricing system. The higher the grade, the higher the value of the diamond will be. Nonetheless, mid-range diamonds are also the most bought and sold, making it more liquid compared to the top-grade diamonds. Long-lasting and tangible assets with elevated intrinsic value; diamonds are exceptional value holders that make for a smart investment. They retain and increase their value, especially during inflation and uncertain times. Though they may not be a practical choice for those who want a quick profit, a patient and wise investor reaps generous returns if he or she takes advantage of this unique potential.

Earnings for the Week

Monday: Big Lots Inc (BIG)

Tuesday: ADT Corp (ADT), Analog Devices Inc (ADI) {after the close}, PVH Corp (PVH) {after the close},

Wednesday: Aeropostale Inc (ARO) {after the close}, American Eagle Outfitters Inc (AEO), Ann Inc (ANN), Express Inc (EXPR), GUESS? Inc (GES), TiVo Inc (TIVO)

Thursday: Barnes & Noble Inc (BKS), Kroger Co (KR), Tiffany & Co (TIF)

Friday: No major announcements scheduled.
* Earnings dates and times are subject to change

Economic Data this Week

Monday
No scheduled announcements.

Tuesday
Durable Orders @ 8:30 AM for October (Est. = 0.4% to 0.5%, Prior = 9.8%)
Case-Shiller 20-city Index @ 9:00 AM for September (Est. = 2.5% to 3.1%, Prior = 2.0%)
Consumer Confidence @ 10:00 AM for November (Est. = 73.0, Prior = 72.2)
FHFA Housing Price Index @ 10:00 AM for September (Est. = n/a, Prior = 0.7%)

Wednesday
MBA Mortgage Index @ 7:00 AM for 11/24 (Est. = n/a, Prior = -2.2%)
New Home Sales @ 10:00 AM for October (Est. = 388K to 395K, Prior = 389K)
Crude Oil Inventories @ 10:30 AM for 11/24 (Est. = n/a, Prior = -1.466M)
Fed's Beige Book @ 2:00 PM for October

Thursday
Initial Claims @ 8:30 AM for 11/24 (Est. = 395K to 400K, Prior = 410K)
Continuing Claims @ 8:30 AM for 11/17 (Est. = 3325K, Prior = 3337K)
Pending Home Sales @ 10:00 AM for October (Est. = 1.0%, Prior = 0.3%)

Friday
Personal Income @ 8:30 AM for October (Est. = 0.0% to 0.2%, Prior = 0.4%)
Personal Spending @ 8:30 AM for October (Est. = 0.0% to 0.1%, Prior = 0.8%)
Chicago PMI @ 9:45 AM for November (Est. = 50.0 to 50.7, Prior = 49.9)