Monday, July 30, 2012

Weekly Newsletter July 29th - August 4th

Current Events: The gains experienced across the major U.S. indexes on Thursday and Friday were enough to finish the week on a high note. Moreover, with these recent gains further confirmation that the prevailing two-month choppy upward trend continues, rebutting the large slide witnessed throughout May. However, a slow-to-recover U.S. economy likely means the nation’s unemployment rate will remain idle around a lackluster 8%, reducing the likelihood of an economic recovery before the end of the year, especially with the ongoing debt crisis occurring overseas.

What to Look for This Week

Earnings reports will take a backseat this week as investors will focus on the heavy dose of key economic reports, including data on the unemployment rate, the Fed rate, consumer spending, and consumer confidence.

News Affecting the Markets

The University of Michigan Consumer Sentiment report released on Friday came in at the lowest point of the year. The report stated that while consumers are seeing relief at the pump, there’s now concern about food prices. The index, which is not seasonally adjusted, has not been above 80 since the recession. It was as high as 96.9 in July 2007.

Smart Investing

Choosing the Right Retirement Plan: Having a retirement plan in place is essential to your future financial well-being. Choosing the right retirement plan and the right investment choices will insure your retirement will be all that you hope it will be. Whether you have a 401(k), a traditional IRA, a Roth IRA or a combination of plans, investing now for retirement is smart move. A 401(k) plan is a great way to prepare for retirement through your current employer. However, for self-employed individuals and those seeking additional plans traditional IRA and Roth IRA plans are needed. Depending on when you wish to pay taxes on your investments will determine which you will setup.

Earnings for the Week

Monday: Alere Inc (ALR), Anadarko Petroleum Corp (APC) {After the close}, Arrow Electronics Inc (ARW), CapitalSource Inc (CSE) {After the close}, CubeSmart (CUBE), Eastman Chemical Co (EMN) {After the close}, Extra Space Storage Inc (EXR) {After the close}, Forest Oil Corp (FST) {After the close}, Franklin Resources Inc (BEN), HCA Holdings Inc (HCA), Herbalife Ltd (HLF) {After the close}, Hertz Global Holdings Inc (HTZ) {After the close}, Hologic Inc (HOLX) {After the close}, Ion Geophysical Corp (IO), Jacobs Engineering Group Inc (JEC) {After the close}, Leucadia National Corp (LUK), Loews Corp (L), Masco Corp (MAS) {After the close}, Northeast Utilities (NU) {After the close}, Plum Creek Timber Company Inc (PCL) {After the close}, Rosetta Genomics Ltd (ROSG), Seagate Technology PLC (STX) {After the close}, StemCells Inc (STEM), Superior Energy Services Inc (SPN) {After the close}, Tim Participacoes SA (TSU) {After the close}, UDR Inc (UDR), Vertex Pharmaceuticals Inc (VRTX) {After the close}, W&T Offshore Inc (WTI) {After the close}

Tuesday: A123 Systems Inc (AONE), Aetna Inc (AET), Allstate Corp (ALL) {After the close}, Archer Daniels Midland co (ADM), Axis Capital Holdings Ltd (AXS) {After the close}, BMC Software Inc (BMC) {After the close}, BrightPoint Inc (CELL), CBRE Group Inc (CBG) {After the close}, Coach Inc (COH), Con-way Inc (CNW) {After the close}, Cummins Inc (CMI), DDR Corp (DDR) {After the close}, DDR Corp (XRAY), Ecolab Inc (ECL), Edison International (EIX) {After the close}, Electronic Arts Inc (EA) {After the close}, Entergy Corp (ETR), EXCO Resources Inc (XCO) {After the close}, FMC Corp (FMC), Frontier Communications Corp (FTR) {After the close}, Genworth Financial Inc (GNW) {After the close}, Harris Corp (HRS), HCP Inc (HCP), Kimco Realty Corp (KIM) {After the close}, Life Technologies Corp (LIFE) {After the close}, Louisiana Pacific Corp (LPX), ONEOK Inc (OKE) {After the close}, Pfizer Inc (PFE), Pioneer Natural Resources Co (PXD) {After the close}, Pioneer Southwest Energy Partners LP (PSE) {After the close}, Polypore International Inc (PPO) {After the close}, Public Service Enterprise Group Inc (PEG), Quantum Corp (QTM) {After the close}, Revlon Inc (REV), Silicon Image Inc (SIMG) {After the close}, The Goodyear Tire & Rubber Co (GT),TRW Automotive Holdings Corp (TRW), Tyco International Ltd (TYC), United States Steel Corp (X), USEC Inc (USU) {After the close}, Valero Energy Corp (VLO), Vishay Intertechnology Inc (VSH), Wabash National Corp (WNC) {After the close}

Wednesday: Allergan Inc (AGN), Amdocs Ltd (DOX) {After the close}, American Tower Corp (AMT), Amerigroup Corp (AGP), Automatic Data Processing Inc (ADP), Avis Budget Group Inc (CAR) {After the close}, Avon Products Inc (AVP), BioMed Realty Trust Inc (BMR) {After the close}, Burger King Worldwide Inc (BKW), Cal Dive International Inc (DVR) {After the close}, Cavium Inc (CAVM) {After the close}, Consolidated Edison Inc (ED), DaVita Inc (DVA) {After the close}, Devon Energy Corp (DVN), Dominion Resources Inc (D), Enterprise Products Partners LP (EPD), Exelon Corp (EXC), General Growth Properties Inc (GGP) {After the close}, Georgia Gulf Corp (GGC) {After the close}, Harley-Davidson Inc (HOG), Hospira Inc (HSP), Huntsman Corp (HUN), IntercontinentalExchange Inc (ICE), Invesco Mortgage Capital Inc (IVR) {After the close}, LeapFrog Enterprises Inc (LF) {After the close}, Lincoln National Corp (LNC) {After the close}, Macerich Co (MAC), Marathon Oil Corp (MRO), MasterCard Inc (MA), Metlife Inc (MET) {After the close}, Murphy Oil Corp (MUR) {After the close}, Onyx Pharmaceuticals Inc (ONXX) {After the close}, Owens Corning (OC), Penn Virginia Corp (PVA) {After the close}, Phillips 66 (PSX), Piedmont Office Realty Trust Inc (PDM) {After the close}, Prudential Financial Inc (PRU) {After the close}, R.R. Donnelley & Sons Co (RRD), Radian Group Inc (RDN), Rockwood Holdings Inc (ROC), ServiceNow Inc (NOW) {After the close}, SM Energy Co (SM) {After the close}, Stone Energy Corp (SGY) {After the close}, Tesoro Corp (TSO) {After the close}, The Hartford Financial Services Group Inc (HIG) {After the close}, Time Warner Inc (TWX), Transocean Ltd (RIG) {After the close}, Two Harbors Investment Corp (TWO) {After the close}, Unum Group (UNM) {After the close}, Vonage Holdings Corp (VG), Walter Energy Inc (WLT) {After the close}, Weight Watchers International Inc (WTW) {After the close}, Williams Companies Inc (WMB) {After the close}, Willis Group Holdings PLC (WSH) {After the close}, Wisconsin Energy Corp (WEC)

Thursday: Activision Blizzard Inc (ATVI) {After the close}, Ameren Corp (AEE), American International Group Inc (AIG) {After the close}, Apache Corp (APA), Apartment Investment and Management Co (AIV) {After the close}, ARIAD Pharmaceuticals Inc (ARIA), AuthenTec Inc (AUTH) {After the close}, Beam Inc (BEAM), Becton Dickinson and Co (BDX), Bill Barrett Corp (BBG), Body Central Corp (BPDY) {After the close}, Boise Inc (BZ), Cardinal Health Inc (CAH), CBS Corp (CBS) {After the close}, CenterPoint Energy Inc (CNP), Cigna Corp (CI), Cimarex Energy Co (XEC), DCT Industrial Trust Inc (DCT) {After the close}, Denbury Resources Inc (DNR), DIRECTV (DTV), Dolby Laboratories Inc (DLB), Duke Energy Corp (DUK), Exterran Holdings Inc (EXH), Fluor Corp (FLR) {After the close}, General Motors Co (GM), Halcon Resources Corp (HK), Kellogg Co (K), Kodiak Oil & Gas Corp (KOG) {After the close}, Kraft Foods Inc (KFT) {After the close}, Lear Corp (LEA), Lender Processing Services Inc (LPS) {After the close}, MasTec Inc (MTZ) {After the close}, MDU Resources Group Inc (MDU), MFA Financial Inc (MFA), MGIC Investment Corp (MTG), Molycorp Inc (MCP) {After the close}, Monster Worldwide Inc (MWW), National Retail Properties Inc (NNN), NorthStar Realty Finance Corp (NRF), Och-Ziff Capital Management Group LLC (OZM), Ocwen Financial Corp (OCN), OfficeMax Inc (OMX), OpenTable Inc (OPEN) {After the close}, Orient-Express Hotels Ltd (OEH) {After the close}, Parker Hannifin Corp (PH), PerkinElmer Inc (PKI) {After the close}, PetroQuest Energy Inc (PQ), Pinnacle West Capital Corp (PNW), Pitney Bowes Inc (PBI) {After the close}, Plains Exploration & Production Co (PXP), Progressive Corp (PGR), Quanta Services Inc (PWR), ResMed Inc (RMD) {After the close}, Rowan Companies PLC (RDC), Sally Beauty Holdings Inc (SBH), SandRidge Energy Inc (SD) {After the close}, Scripps Networks Interactive Inc (SNI), Sealed Air Corp (SEE), Sempra Energy (SRE), Southwestern Energy Co (SWN) {After the close}, Spectra Energy Corp (SE), Sunoco Inc (SUN) {After the close}, Sunstone Hotel Investors Inc (SHO) {After the close}, Swift Energy Co (SFY), TECO Energy Inc (TE), Teradata Corp (TDC), The Clorox Co (CLX), Time Warner Cable Inc (TWC), Titanium Metals Corp (TIE), Ultra Petroleum Corp (UPL), ValueClick Inc (VCLK) {After the close}, Western Refining Inc (WNR), WPX Energy Inc (WPX), Xcel Energy Inc (XEL), Xylem Inc (XYL)

Friday: Beazer Homes USA Inc (BZH), Elster Group SE (ELT), EOG Resources Inc (EOG) {After the close}, Exelis Inc (XLS), Health Net Inc (HNT), ITT Corp (ITT), Merge Healthcare Inc (MRGE), NYSE Euronext (NYX), Procter & Gamble Co (PG), Sotheby's (BID), Viacom Inc (VIAB), Wellcare Health Plans Inc (WCG)
* Earnings dates and times are subject to change

Economic Data this Week

Monday
No announcements scheduled.

Tuesday
Personal Income @ 8:30 AM for June (Est. = 0.4% to 0.9%, Prior = 0.2%)
Personal Spending @ 8:30 AM for June (Est. = 0.1%, Prior = 0.0%)
Case-Shiller 20-city Index @ 9:00 AM for May (Est. = -1.8%, Prior = -1.9%)
Chicago PMI @ 9:45 AM for July (Est. = 51.0 to 52.5, Prior = 52.9)
Consumer Confidence @ 10:00 AM for July (Est. = 61.0, Prior = 62.0)

Wednesday
MBA Mortgage Index @ 7:00 AM for 07/29 (Est. = n/a, Prior = 0.9%)
ADP Employment Change @ 8:15 AM July (Est. = 125K, Prior = 179K)
ISM Index @ 10:00 AM for July (Est. = 49.0 to 49.9, Prior = 49.7)
Construction Spending @ 10:00 AM for June (Est. = 0.5% to 0.7%, Prior = 0.9%)
Crude Oil Inventories @ 10:30 AM for 07/28 (Est. = n/a, Prior = 2.717M)
Auto Sales @ 2:00 PM for July (Est. = n/a, Prior = 4.9M)
Truck Sales @ 2:00 PM for July (Est. = n/a, Prior = 6.1M)
FOMC Rate Decision @ 2:15 PM for July (Est. = 0.25%, Prior = 0.25%)

Thursday
Initial Claims @ 8:30 AM for 07/28 (Est. = 365K to 385K, Prior = 353K)
Continuing Claims @ 8:30 AM for 07/21 (Est. = 3298K to 3300K, Prior = 3287K)
Factory Orders @ 10:00 AM for June (Est. = 0.6% to 1.0%, Prior = 0.7%)

Friday
Nonfarm Payrolls @ 8:30 AM for July (Est. = 85K to 100K, Prior = 80K)
Nonfarm Private Payrolls @ 8:30 AM for July (Est. = 100K to 105K, Prior = 84K)
Unemployment Rate @ 8:30 AM for July (Est. = 8.2% to 8.2%, Prior = 8.2%)
Hourly Earnings @ 8:30 AM for July (Est. = 0.1% to 0.2%, Prior = 0.3%)
ISM Services @ 10:00 AM for July (Est. = 52.0 to 52.2, Prior = 52.1)

Tuesday, July 24, 2012

Weekly Newsletter July 22nd - July 28th

Current Events: Spain and Greece continue to worry investors as both countries debt managing ability is large question. The fear generated from the euro-zone crisis has set off the U.S. markets resulting in a hefty two-day hit. The recent slide has caused the Dow Industrials to slip to its first consecutive triple-digit point loss since April.

What to Look for This Week

Investors will look to the large stream of second-quarter earnings announcements this week for an opportunity admits the on-going saga with the euro-zone. Stocks from a wide variety of sectors are set to report this week, including energy, housing, pharmaceuticals, and technology. Every day names such as Chevron, Apple, Merck, Facebook, Amazon, and 3M will announce.

News Affecting the Markets

On Monday Moody's Investors Service lowered on Germany's triple-A rating from stable to negative. Growing uncertainties from the euro-zone crisis was the main culprit for the lowering. Other European countries were downgraded Monday as well, including the Netherlands and Luxembourg. Moody's stressed the fear of Greece abandoning the euro-zone and the catastrophic impact it would impose subsequently on Spain and Italy. Such a calamity would cause better rated countries, such as Germany, to step in and absorb most of the burden.

Smart Investing

When a Stock Price Declines: There are numerous reasons why a stock's price falls and it is up to you as a stock investor to determine the cause. By identifying why the price is falling, you are far better equipped to decide if it is time to sell your stock position or if the fall in value presents an opportunity to purchase additional shares of a stock. The key is neither to react every time a stock you own dips, nor to become so emotionally attached to an investment; the decision to sell a stock should be similar to the decision to buy a stock. But the price paid for a stock must be put aside when deciding if it is time to sell. Maintaining your objectivity during these times is important to your investing success. Unfortunately, there are no simple, mechanical rules that are effective for when to sell a stock. Nothing substitutes for an understanding of what economic, industry, and firm fundamentals drive your stock's price. By examining the situation rationally and doing your homework to determine if the fundamentals of the company have changed, you are better equipped to determine whether the time has come to sell your stock.

Earnings for the Week

Monday: Assured Guaranty Ltd (AGO), Baidu Inc (BIDU) {After the close}, Celanese Corp (CE) {After the close}, Coca-Cola Enterprises Inc (CCE), Eaton Corp (ETN), Fidelity National Financial Inc (FNF) {After the close}, Halliburton Co (HAL), Hasbro Inc (HAS), Health Management Associates Inc (HMA) {After the close}, Helix Energy Solutions Group Inc (HLX) {After the close}, McDonald's Corp (MCD), Steel Dynamics Inc (STLD) {After the close}, Texas Instruments Inc (TXN) {After the close}, VMware Inc (VMW) {After the close}, Zions Bancorporation (ZION) {After the close}

Tuesday: ACE Limited (ACE) {After the close}, Aflac Inc (AFL) {After the close}, AK Steel Holding Corp (AKS), Altera Corp (ALTR) {After the close}, Altria Group Inc (MO), Apple Inc (AAPL), AT&T Inc (T), Avery Dennison Corp (AVY), Boyd Gaming Corp (BYD), Broadcom Corp (BRCM) {After the close}, Cabot Oil & Gas Corp (COG) {After the close}, Centene Corp (CNC), Chicago Bridge and Iron Company NV (CBI) {After the close}, Compuware Corp (CPWR) {After the close}, Domino's Pizza Inc (DPZ), E. I. du Pont de Nemours and Co (DD), Edwards Lifesciences Corp (EW) {After the close}, EMC Corp (EMC), FMC Technologies Inc (FTI) {After the close}, Illinois Tool Works Inc (ITW), International Game Technology (IGT), Juniper Networks Inc (JNPR) {After the close}, Lexmark International Inc (LXK), Lockheed Martin Corp (LMT), Nabors Industries Ltd (NBR) {After the close}, Netflix Inc (NFLX) {After the close}, Newfield Exploration Co (NFX) {After the close}, Norfolk Southern Corp (NSC) {After the close}, Peabody Energy Corp (BTU), Regions Financial Corp (RF), Reynolds American Inc (RAI), Robert Half International Inc (RHI) {After the close}, Rockwell Collins Inc (COL), Ryder System Inc (R), Simon Property Group Inc (SPG), Tempur-Pedic International Inc (TPX) {After the close}, TripAdvisor Inc (TRIP) {After the close}, Under Armour Inc (UA), United Parcel Service Inc (UPS), Waters Corp (WAT), Weatherford International Ltd (WFT) {After the close}, Western Union Co (WU), Whirlpool Corp (WHR)

Wednesday: Akamai Technologies Inc (AKAM) {After the close}, Allegheny Technologies Inc (ATI), Ameriprise Financial Inc (AMP) {After the close}, AOL Inc (AOL), Assurant Inc (AIZ) {After the close}, Boeing Co (BA), Bristol-Myers Squibb Co (BMY), Caterpillar Inc (CAT), Cliffs Natural Resources Inc (CLF) {After the close}, CNO Financial Group Inc (CNO) {After the close}, Community Health Systems Inc (CYH) {After the close}, ConocoPhillips (COP), Cooper Industries PLC (CBE), Corning Inc (GLW), Delta Air Lines Inc (DAL), Digital Realty Trust Inc (DLR), Duke Realty Corp (DRE) {After the close}, Eli Lilly and Co (LLY), Equifax Inc (EFX) {After the close}, Equity Residential (EQR) {After the close}, General Dynamics Corp (GD), Hess Corp (HES), KBR Inc (KBR) {After the close}, Las Vegas Sands Corp (LVS) {After the close}, Lorillard Inc (LO), LSI Corp (LSI) {After the close}, Motorola Solutions Inc (MSI), New York Community Bancorp Inc (NYB), Northrop Grumman Corp (NOC), Oceaneering International Inc (OII) {After the close}, Omnicare Inc (OCR), Owens-Illinois Inc (OI) {After the close}, PepsiCo Inc (PEP), Praxair Inc (PX), Questar Corp (STR) {After the close}, RadioShack Corp (RSH), Rockwell Automation Inc (ROK), Ryland Group Inc (RYL) {After the close}, Senior Housing Properties Trust (SNH), Shutterfly Inc (SFLY) {After the close}, Skechers USA Inc (SKX) {After the close}, Southern Co (SO), Teradyne Inc (TER) {After the close}, Terex Corp (TEX) {After the close}, Tesla Motors Inc (TSLA) {After the close}, The Cheesecake Factory Inc (CAKE) {After the close}, The Jones Group Inc (JNY), Thermo Fisher Scientific Inc (TMO), Trinity Industries Inc (TRN) {After the close}, US Airways Group Inc (LCC), Visa Inc (V) {After the close}, W. R. Grace & Co (GRA), WellPoint Inc (WLP), Western Digital Corp (WDC) {After the close}, Whiting Petroleum Corp (WLL) {After the close}, Whole Foods Market Inc (WFM) {After the close}, Wyndham Worldwide Corp (WYN), Zynga Inc (ZNGA) {After the close}

Thursday: 3D Systems Corp (DDD), 3M Co (MMM), Acme Packet Inc (APKT), Agco Corp (AGCO), Alaska Air Group Inc (ALK), Amazon.Com Inc (AMZN) {After the close}, Ball Corp (BLL), Boston Scientific Corp (BSX), Brunswick Corp (BC), Bunge Ltd (BG), CA Inc (CA), Cameron International Corp (CAM), CBL & Associates Properties Inc (CBL) {After the close}, CBRE Group Inc (CBG), Chubb Corp (CB) {After the close}, CME Group Inc (CME), CMS Energy Corp (CMS), Colgate-Palmolive Co (CL), CONSOL Energy Inc (CNX), Covidien PLC (COV), Dr Pepper Snapple Group Inc (DPS), Ensco PLC (ESV), EQT Corp (EQT), Exxon Mobil Corp (XOM), Facebook Inc (FB) {After the close}, Federated Investors Inc (FII) {After the close}, Gilead Sciences Inc (GILD) {After the close}, GNC Holdings Inc (GNC), Ingram Micro Inc (IM) {After the close}, International Paper Co (IP), Janus Capital Group Inc (JNS), Kennametal Inc (KMT), Key Energy Services Inc (KEG) {After the close}, Kimberly-Clark Corp (KMB), L-3 Communications Holdings Inc (LLL), McGraw-Hill Companies Inc (MHP), McKesson Corp (MCK) {After the close}, MetroPCS Communications Inc (PCS), Molina Healthcare Inc (MOH) {After the close}, Moodys Corp (MCO), Mylan Inc (MYL), National Oilwell Varco Inc (NOV), Noble Energy Inc (NBL), Occidental Petroleum Corp (OXY), Old Republic International Corp (ORI), Oshkosh Corp (OSK), Patterson-UTI Energy Inc (PTEN), Power-One Inc (PWER) {After the close}, Principal Financial Group Inc (PFG) {After the close}, Prologis Inc (PLD), PulteGroup Inc (PHM), Raytheon Co (RTN), Regal Entertainment Group (RGC) {After the close}, Safeguard Scientifics Inc (SFE), Sprint Nextel Corp (S), Standard Pacific Corp (SPF) {After the close}, Starbucks Corp (SBUX) {After the close}, Starwood Hotels & Resorts Worldwide Inc (HOT), Tenneco Inc (TEN), The Hershey Co (HSY), United Continental Holdings Inc (UAL), United Technologies Corp (UTX), Universal Health Services Inc (UHS) {After the close}, Veeco Instruments Inc (VECO) {After the close}, Ventas Inc (VTR), Verisign Inc (VRSN) {After the close}, Vulcan Materials Co (VMC), Waddell & Reed Financial Inc (WDR), Waste Management Inc (WM), Watson Pharmaceuticals Inc (WPI), Zimmer Holdings Inc (ZMH)

Friday: Aon PLC (AON), Arch Coal Inc (ACI), Calpine Corp (CPN), Chevron Corp (CVX), Colfax Corp (CFX), Coventry Health Care Inc (CVH), DR Horton Inc (DHI), Helmerich & Payne Inc (HP), Hercules Offshore Inc (HERO), KKR & Co. L.P. (KKR), Legg Mason Inc (LM), LyondellBasell Industries NV (LYB), Merck & Co Inc (MRK), Newell Rubbermaid Inc (NWL), Newmont Mining Corp (NEM), Rosetta Genomics Ltd (ROSG), Weyerhaeuser Co (WY)
* Earnings dates and times are subject to change

Economic Data this Week

Monday
No announcements scheduled.

Tuesday
FHFA Housing Price Index @ 10:00 AM for May (Est. = n/a, Prior = 0.8%)

Wednesday
MBA Mortgage Index @ 7:00 AM for 07/21 (Est. = n/a, Prior = n/a)
New Home Sales @ 10:00 AM for June (Est. = 373K to 375K, Prior = 369K)
Crude Oil Inventories @ 10:30 AM for 07/21 (Est. = n/a, Prior = n/a)

Thursday
Initial Claims @ 8:30 AM for 07/21 (Est. = 381K to 385K, Prior = 386K)
Continuing Claims @ 8:30 AM for 07/14 (Est. = 3300K, Prior = 3300K)
Durable Orders @ 8:30 AM for June (Est. = 0.3% to 1.0%, Prior = 1.3%)
Pending Home Sales @ 10:00 AM for June (Est. = 0.9% to 1.0%, Prior = 5.9%)

Friday
GDP @ 8:30 AM for Q2 (Est. = 0.3% to 1.2%, Prior = 1.9%)
Michigan Sentiment @ 9:55 AM for July (Est. = 71.5 to 72.0, Prior = 72.0)

Sunday, July 15, 2012

Weekly Newsletter July 15th - July 21st

Current Events: Friday's surge saved the U.S. equity indexes from a disappointing week. The Friday rally, which was the best session since June, ended the longest losing stretch the U.S. stock indexes have seen since May. With industry-leading companies such as Microsoft, General Electric, Bank of America, Goldman Sachs, and more all set to announce earnings this week, investors will utilize these reports and outlooks as a gauge to determine potential trends.

What to Look for This Week

With a heavy dose of economic reports coming from various departments and regions of the U.S. this week, clearer signs of the nation's health status will emerge for scrutinizing investors. Coupled that with the plethora of second-quarter earnings announcements, and this week is sure to have large implications on establishing a general direction of the current fluctuating markets.

News Affecting the Markets

Missouri state banking regulators shut down Glasgow Savings Bank Friday. The one-branch Missouri bank is the 33rd bank to fail this year nationally. Glasgow Savings' deposits will be assumed by Regional Missouri Bank of Marceline, Mo. Deposits will continue to be insured by the FDIC, up to legal limits. As of March 31, Glasgow Savings Bank had roughly $24.8 million in total assets and $24.2 million in total deposits.

Smart Investing

Building an ETF Portfolio: As investment products increase in number, complexity and cost, many individuals are searching for an investment approach guided by two very basic principles: Keep it simple, and Keep it economical. Exchange-traded funds (ETFs) offer a useful starting point for such an investment approach. However with hundreds of different exchange-traded funds to choose from, and a never-ending number of ETF portfolio combinations, it can be confusing for the novice investor to grasp at first glance. Keep in mind, a portfolio must meet your financial goals and match your risk tolerance. ETFs provide all of the advantages of the more commonly invested traditional index mutual funds, including diversification, tax efficiency and low maintenance. They also feature rock-bottom costs, with expense ratios that are even lower than their mutual fund counterparts. Despite the large number of ETFs available, it is possible to quickly narrow down your choices and build a simple, low-cost portfolio of exchange-traded funds once you have an understanding of all the options available. These portfolio approaches require very little time and energy to manage, is relatively low cost, and yet provides substantial diversification.

Earnings for the Week

Monday: Brown & Brown Inc (BRO) {After the close}, Citigroup Inc (C), Gannett Co Inc (GCI), Packaging Corp of America (PKG) {After the close}, Robert Half International Inc (RHI), United Continental Holdings Inc (UAL)
Tuesday: Acme Packet Inc (APKT), Albemarle Corp (ALB) {After the close}, Comerica Inc (CMA), CSX Corp (CSX) {After the close}, Fidelity National Information Services Inc (FIS) {After the close}, Forest Laboratories Inc (FRX), Goldman Sachs Group Inc (GS), Hanesbrands Inc (HBI), Host Hotels and Resorts Inc (HST), Intel Corp (INTC) {After the close}, Johnson & Johnson (JNJ), Kansas City Southern (KSU), Mattel Inc (MAT), McMoRan Exploration Co (MMR), Mosaic Co (MOS), New Oriental Education & Technology Group Inc (EDU), OCI Materials Co Ltd (OMC), Rosetta Genomics Ltd (ROSG), State Street Corp (STT), The Coca-Cola Co (KO), United Rentals Inc (URI) {After the close}, Wynn Resorts Ltd (WYNN) {After the close}, Yahoo! Inc (YHOO) {After the close}
Wednesday: Abbott Laboratories (ABT), American Express Co (AXP) {After the close}, Amphenol Corp (APH), Bank of America Corp (BAC), Bank of New York Mellon Corp (BK), BlackRock Inc (BLK), Charles Schwab Corp (SCHW), Check Point Software Technologies Ltd (CHKP), Core Laboratories NV (CLB) {After the close}, Covanta Holding Corp (CVA) {After the close}, Crown Holdings Inc (CCK) {After the close}, eBay Inc (EBAY) {After the close}, Honeywell International Inc (HON), International Business Machines Corp (IBM) {After the close}, Kinder Morgan Energy Partners LP (KMP) {After the close}, Knight Capital Group Inc (KCG), LaSalle Hotel Properties (LHO) {After the close}, Noble Corp (NE) {After the close}, PNC Financial Services Group Inc (PNC), Qualcomm Inc (QCOM) {After the close}, SLM Corp (SLM), St. Jude Medical Inc (STJ) {After the close}, Stryker Corp (SYK) {After the close}, U.S. Bancorp (USB), Yum! Brands Inc (YUM) {After the close}
Thursday: Advanced Micro Devices Inc (AMD) {After the close}, Alliance Data Systems Corp (ADS), Baxter International Inc (BAX), BB&T Corp (BBT), Blackstone Group LP (BX), Capital One Financial Corp (COF) {After the close}, Chipotle Mexican Grill Inc (CMG) {After the close}, Cypress Semiconductor Corp (CY), Danaher Corp (DHR), Diamond Offshore Drilling Inc (DO), Fairchild Semiconductor International Inc (FCS), Freeport-McMoRan Copper & Gold Inc (FCX), Genuine Parts Co (GPC), Johnson Controls Inc (JCI), KeyCorp (KEY), Laboratory Corporation of America Holdings (LH), Microsoft Corp (MSFT) {After the close}, Morgan Stanley (MS), NCR Corp (NCR), Nucor Corp (NUE), Philip Morris International Inc (PM), Quest Diagnostics Inc (DGX), Safeway Inc (SWY), SanDisk Corp (SNDK), Sherwin-Williams Co (SHW), Southwest Airlines Co (LUV), Steel Dynamics Inc (STLD), Swift Transportation Co (SWFT) {After the close}, TCF Financial Corp (TCB), Textron Inc (TXT), Travelers Companies Inc (TRV), Union Pacific Corp (UNP), UnitedHealth Group Inc (UNH), Verizon Communications Inc (VZ), WESCO International Inc (WCC)
Friday: American Electric Power Company Inc (AEP), Autoliv Inc (ALV), Baker Hughes Inc (BHI), General Electric Co (GE), Ingersoll-Rand PLC (IR), Manpower Inc (MAN), Schlumberger NV (SLB), SunTrust Banks Inc (STI), Xerox Corp (XRX)
* Earnings dates and times are subject to change

Economic Data this Week
Monday
Retail Sales @ 8:30 AM for June (Est. = 0.2% to 0.4%, Prior = -0.2%)
Empire Manufacturing @ 8:30 AM for July (Est. = 0.0 to 3.8, Prior = 2.3)
Business Inventories @ 10:00 AM for May (Est. = 0.2%, Prior = 0.4%)
Tuesday
CPI @ 8:30 AM for June (Est. = 0.1%, Prior = -0.3%)
Core CPI @ 8:30 AM for June (Est. = 0.2%, Prior = 0.2%)
Industrial Production @ 9:15 AM for June (Est. = 0.0% to 0.3%, Prior = -0.1%)
Capacity Utilization @ 9:15 AM for June (Est. = 79.0% to 79.2%, Prior = 79.0%)
NAHB Housing Market Index @ 10:00 AM for July (Est. = 30, Prior = 29)
Wednesday
MBA Mortgage Index @ 7:00 AM for 07/14 (Est. = n/a, Prior = -2.1%)
Housing Starts @ 8:30 AM for June (Est. = 715K to 743K, Prior = 708K)
Building Permits @ 8:30 AM for June (Est. = 765K, Prior = 780K)
Crude Oil Inventories @ 10:30 AM for 07/14 (Est. = n/a, Prior = -4.696M)
Fed's Beige Book @ 2:00 PM for June
Thursday
Initial Claims @ 8:30 AM for 07/14 (Est. = 360K to 365K, Prior = 350K)
Continuing Claims @ 8:30 AM for 07/07 (Est. = 3300K, Prior = 3304K)
Existing Home Sales @ 10:00 AM for June (Est. = 4.65M, Prior = 4.55M)
Philadelphia Fed @ 10:00 AM for July (Est. = -10.0 to -13.0, Prior = -16.6)
Leading Indicators @ 10:00 AM for June (Est. = -0.2%, Prior = 0.3%)
Friday
No announcements scheduled.

Wednesday, July 11, 2012

Weekly Newsletter July 8th - July 14th

Current Events: Friday's abysmal downslide was enough to eliminate the positive days experienced earlier in the 4th of July holiday-shortened week. Unappealing reports from the U.S. Department of Labor, coupled with concerns over Spanish debt, turned a positive week quickly into a negative one across all major U.S. equity indexes.

What to Look for This Week

The aluminum marker, Alcoa is set to kick of the impending earnings season with household names such as Marriot, JP Morgan, and Wells Fargo set to follow suit later in the week. However, many analysts and investors are not hopefully when looking at this upcoming season of earnings as most are predicting lower-than-expected earnings to be released. The general consensus seems to be that corporate America's growth rate in slowing down. If this proves to be the case, continued negative pressure on the U.S. markets will likely ensue throughout the earnings season.

News Affecting the Markets

With Spanish bond yields rising this week to levels commonly viewed as unsustainable, U.S. and world markets negatively react once again to news coming out of Europe. Spain's 10-year debt has risen above 7%, a level that was considered the breaking point for Greece, Ireland and Portugal pushing those nations to request aid from euro-zone partners and the International Monetary Fund. The questions surrounding what Spain's next steps will be and the uncertainty of a definite safety net for the financially burden Mediterranean country looms over the financial markets around the world.

Smart Investing

How Bonds Operate: When considering bonds it is essential to have a firm understanding of the basics. First, consider the fact that the price of bonds and interest rates move in opposite directions. If interest rates decline, the price of a bond goes up, and if interest rates rise, the price of a bond declines. Second, bonds with longer maturities incur significantly higher interest rate risk than those with shorter maturities. That is a disadvantage if interest rates rise, but an advantage if interest rates decline. With these two key concepts in mind, we have the two faces of interest rate fluctuations: risk and opportunity. It may sound paradoxical, but a rising or strong bond market is one in which interest rates are declining because that causes bond prices to rise. You can sell a bond for more than you paid for it and make a profit. A weak bond market is one in which interest rates are raising and, as a result, prices are falling. If you have to sell your bonds, you have to do so at a loss. In either case, with bond investing, the changes in price are correlated to maturity length. Do simply jump into the bond market when looking to avoid the "risk" of the equity market. Without a proper understanding of how bonds operate, participating in the bond market can be just as, if not, more risky.

Earnings for the Week

Monday: Alcoa Inc (AA) {After the close}, Acuity Brands Inc (AYI), MAKO Surgical Corp (MAKO) {After the close}, PriceSmart Inc (PSMT)
Tuesday: OCZ Technology Group Inc (OCZ) {After the close}, Shaw Group Inc (SHAW), Wolverine World Wide Inc (WWW)
Wednesday: ADTRAN Inc (ADTN), Itron Inc (ITRI), Marriott International Inc (MAR) {After the close}, Texas Industries Inc (TXI) {After the close}
Thursday: Commerce Bancshares Inc (CBSH), Fastenal Co (FAST), Washington Federal Inc (WAFD)
Friday: JDA Software Group Inc (JDAS) {After the close}, JPMorgan Chase & Co (JPM), PDL BioPharma Inc (PDLI) {After the close}, Rosetta Genomics Ltd (ROSG), Webster Financial Corp (WBS), Wells Fargo & Co (WFC)
* Earnings dates and times are subject to change

Economic Data this Week

Monday
Consumer Credit @ 3:00 PM for May (Actual = $17.1B)
Tuesday
No major announcements scheduled.
Wednesday
MBA Mortgage Index @ 7:00 AM for 07/07 (Est. = n/a, Prior = -6.7%)
Wholesale Inventories @ 10:00 AM for 06/30 (Est. = 0.2% to 0.3%, Prior = 0.6%)
Crude Oil Inventories @ 10:30 AM for 07/07 (Est. = n/a, Prior = -4.270M)
FOMC Minutes @ 2:00 PM for 06/20
Thursday
Initial Claims @ 8:30 AM for 07/07 (Est. = 360K to 375K, Prior = 374K)
Continuing Claims @ 8:30 AM for 06/30 (Est. = 3300K, Prior = 3306K)
Friday
PPI @ 8:30 AM for June (Est. = -0.6% to -0.8%, Prior = -1.0%)
Core PPI @ 8:30 AM for June (Est. = 0.2%, Prior = 0.2%)
Michigan Sentiment @ 9:55 AM for July (Est. = 72.0 to 73.5, Prior = 73.2)

Monday, July 2, 2012

Weekly Newsletter July 1st - July 7th

Current Events: With the 4th of July occurring this Wednesday, the U.S. markets will have a shortened week. While the holiday week will reduce volume to a degree, many investors will be actively engaged this week determining if the upward surge experienced Friday across the U.S. indexes is maintainable. Moreover, the unemployment rate announcement on Friday will be sure to draw heavy attention as well.

What to Look for This Week

With the shortened week there will be a scarcity of earnings report announcements. However, the release of reports on U.S. employment Friday will likely peak the interest of investors. While the market has seen a spike in recent days over the improvement of Euro-zone discussions/decisions, poor reports on the status of the U.S. job market can damage recent gains. Since spring hiring has been poor in the U.S. and many are expecting such weakness to carry over into June. Such an outcome could reestablish worries about the health of the economy.

News Affecting the Markets

The positive momentum from announcements that the European Union will establish a single supervisor for the region’s banks and seek to bring down costs in Italy and Spain sparked a monumental boost to the U.S. equity markets on Friday, sending the Dow Jones, Nasdaq, and the S&P 500 all into positive territory for the week. While U.S. economic reports will likely affect the markets towards the later part of the week, buzz over the European Union's decisions last week are certainly expected to spill over into much of the early part of this week as the U.S., as well as the world, has been anxiously awaiting such news for months.

Smart Investing

Trend is Your Friend: While leveraged ETFs are in many ways fairly straightforward products, there are some complexities to these funds that should be understood before investing. Generally, a leveraged ETF will invest in a variety of instruments to amplify the exposure to an underlying index. In addition to equities, leveraged ETFs may use derivatives to gain exposure. Futures allow investors to gain exposure to a benchmark without direct ownership. These products are standardized contracts between two parties that agree to buy or sell an underlying index at a future date. Swaps are customized agreements between two parties to exchange sets of cash flows over a set period of time. In an equity index swap, one party generally agrees to pay cash equal to the total return on an index, while the other agrees to pay a floating interest rate. Leveraged funds are often used to help manage risks in other investments and allow investors to hedge their exposure to sectors they are overweight in. They are also often used to capture returns while eliminating market or sector exposure or to overweight a particular sector by using minimal amounts of cash. Remember, you can never lose more than your initial investment when using leveraged funds. This is in stark contrast to buying on margin or selling stocks short, a process that can cause investors to lose far more than their initial investment.

Earnings for the Week

Monday: Acuity Brands Inc (AYI), Saba Software Inc (SABA)
Tuesday: No major earnings announcements
Wednesday: No major earnings announcements
Thursday: Xyratex Ltd (XRTX) {After the close}
Friday: No major earnings announcements
* Earnings dates and times are subject to change

Economic Data this Week

Monday
ISM Index @ 10:00 AM for June (Est. = 51.5 to 52.2, Prior = 53.5)
Construction Spending @ 10:00 AM for May (Est. = 0.2%, Prior = 0.3%)
Tuesday
Factory Orders @ 10:00 AM for May (Est. = 0.4% to 0.5%, Prior = -0.6%)
Auto Sales @ 2:00 PM for June (Est. = n/a, Prior = 4.7M)
Truck Sales @ 2:00 PM for June (Est. = n/a, Prior = 5.9M)
Wednesday
No announcements scheduled
Thursday
MBA Mortgage Index @ 7:00 AM for 06/30 (Est. = n/a, Prior = -7.1%)
ADP Employment Change @ 8:15 AM for May (Est. = 105K to 110K, Prior = 133K)
Initial Claims @ 8:30 AM for 06/30 (Est. = 385K, Prior = 386K)
Continuing Claims @ 8:30 AM for 06/23 (Est. = 3275K to 3283K, Prior = 3296K)
ISM Services @ 10:00 AM for June (Est. = 53.0, Prior = 53.7)
Crude Oil Inventories @ 11:00 AM for 06/30 (Est. = n/a, Prior = -0.133M)
Friday
Nonfarm Payrolls @ 8:30 AM for June (Est. = 100K, Prior = 69K)
Unemployment Rate @ 8:30 AM for June (Est. = 8.1% to 8.2%, Prior = 8.2%)