Weekly Newsletter February 24th - March 2nd

Current Events:  A strong Friday helped the U.S. markets rebound from a poor two-day stretch that left the Nasdaq and S&P 500 Index slightly down on the week, while the Dow Jones Industrial Index managed to escape slightly positive.

What to Look for This Week

 Retailers of all types will be the talk this week as a long list of famous stores and brands announce earnings, including Home Depot, Macy's, Barnes & Noble, Gap, and Target. These announcements, coupled with home and vehicle sales, will provide investors with key insight on past and future trends of consumers.

News Affecting the Markets

Congress returns to session on Monday, but much is to be done as the White House and legislators face a deadline that is now just 5 days a way, which would trigger automatic federal spending cuts beginning on Friday. This deadline was initially set to trigger on January 1st of 2013, but was pushed back to March 1st as lawmakers could not agree to a deal.

Smart Investing

Buying Straddles Prior to Earnings:  Buying straddles is a great way to play earnings. Many a times, stock prices gap up or down following the quarterly earnings report but often, the direction of the movement can be unpredictable. For instance, a sell off can occur even though the earnings report is good if investors had expected greater results. The strategy when anticipating such a case is to buy a straddle two weeks or so ahead of earnings. A straddle will allow you to capitalize on the movement of the stock regardless of the direction. Note that significant price movement is necessary for a straddle to make money and thus is a common strategy during earnings and key announcements. Ensure that you do your homework and identify stocks that have a history of gap movements.

Earnings for the Week

Monday: 3D Systems Corp (DDD), Big Lots Inc (BIG), Firstenergy Corp (FE), General Cable Corp (BGC), Health Care REIT Inc (HCN) {After the Close}, Hecla Mining Co (HL), Hertz Global Holdings Inc (HTZ), Lowe's Companies Inc (LOW), Quicksilver Resources Inc (KWK)

Tuesday:  American Tower Corp (AMT), Autozone Inc (AZO), DreamWorks Animation SKG Inc (DWA) {After the Close}, Ecolab Inc (ECL), Edison International (EIX) ({After the Close}, GrafTech International Ltd (GTI), Gran Tierra Energy Inc (GTE), Home Depot Inc (HD), iStar Financial Inc (SFI), Macy's Inc (M), MetroPCS Communications Inc (PCS), R.R. Donnelley & Sons Co (RRD), RadioShack Corp (RSH), Range Resources Corp (RRC) {After the Close}, Saks Inc (SKS), Sempra Energy (SRE), Superior Energy Services Inc (SPN) {After the Close}, Tenet Healthcare Corp (THC), TiVo Inc (TIVO) {After the Close}, Trina Solar Ltd (TSL), Vornado Realty Trust (VNO) {After the Close}, Weatherford International Ltd (WFT) {After the Close}

Wednesday: Assured Guaranty Ltd (AGO) {After the Close}, Chicago Bridge & Iron Company NV (CBI) {After the Close}, Cincinnati Bell Inc (CBB), J C Penney Company Inc (JCP) {After the Close}, Limited Brands Inc (LTD) {After the Close}, MBIA Inc (MBI) {After the Close}, Mylan Inc (MYL) {After the Close}, NRG Energy Inc (NRG), Stillwater Mining Co (SWC), Strategic Hotels and Resorts Inc (BEE) {After the Close}, Target Corp (TGT), TJX Companies Inc (TJX), Whiting Petroleum Corp (WLL) {After the Close}, {After the Close}, {After the Close}

Thursday:  Barnes & Noble Inc (BKS), Best Buy Co Inc (BBY), Cablevision Systems Corp (CVC), Chico's FAS Inc (CHS), Deckers Outdoor Corp (DECK) {After the Close}, Gap Inc (GPS) {After the Close}, Iron Mountain Inc (IRM), McDermott International Inc (MDR) {After the Close}, MGIC Investment Corp (MTG), Molycorp Inc (MCP) {After the Close}, Progressive Corp (PGR), Salesforce.com Inc (CRM) {After the Close}, SandRidge Energy Inc (SD) {After the Close}, Seadrill Ltd (SDRL), Sears Holdings Corp (SHLD), Sotheby's (BID), The Wendy's Co (WEN)

Friday:  No major announcements scheduled.

* Earnings dates and times are subject to change

 Economic Data this Week

Monday
No announcements scheduled.

Tuesday
Case-Shiller 20-city Index @ 9:00 AM for December (Est. = 6.0% to 6.5%, Prior = 5.5%)
FHFA Housing Price Index @ 9:00 AM for December (Est. = n/a, Prior = 0.6%)
New Home Sales @ 10:00 AM for January (Est. = 375K to 385K, Prior = 369K)
Consumer Confidence @ 10:00 AM for February (Est. = 62.0 to 62.5, Prior = 58.6)

Wednesday

MBA Mortgage Index @ 7:00 AM for 02/23 (Est. = n/a, Prior = -1.7%)
Durable Orders @ 8:30 AM for January (Est. = -0.5% to 0.2%, Prior = 1.0%)
Pending Home Sales @ 10:00 AM for January (Est. = 1.0%, Prior = -4.3%)
Crude Inventories @ 10:30 AM for 02/23 (Est. = n/a, Prior = 4.143M)

Thursday

Initial Claims @ 8:30 AM for 02/23 (Est. = 360K to 365K, Prior = 362K)

Continuing Claims @ 8:30 AM for 02/16 (Est. = 3150K, Prior = 3148K)
Chicago PMI @ 9:45 AM for February (Est. = 54.0, Prior = 55.6)
Natural Gas Inventories @ 10:30 AM for 02/23 (Est. = n/a, Prior = -127)

Friday

Personal Income @ 8:30 AM for January (Est. = -2.4%, Prior = 2.6%)
Personal Spending @ 8:30 AM for January (Est. = 0.1% to 0.2%, Prior = 0.2%)
Michigan Sentiment @ 9:55 AM for February (Est. = 75.0 to 76.3, Prior = 76.3)
ISM Index @ 10:00 AM for February (Est. = 52.0 to 52.4, Prior = 53.1)
Construction Spending @ 10:00 AM for January (Est. = 0.2% to 0.5%, Prior = 0.9%)
Auto Sales @ 2:00 PM for February (Est. = n/a, Prior = 5.6M)
Truck Sales @ 2:00 PM for February (Est. = n/a, Prior = 6.5M)

 

 

Weekly Newsletter February 17th - February 23rd

Current Events:  Last week's relatively stagnant performance in all three major U.S. indexes is largely due to technical resistance as each sits at multi-year highs. It will likely take some extraordinary news to generate investor interest to purchase at these levels. If such a move lift occurs it could spark a motivating rally.

What to Look for This Week

Though most companies have already reported earnings for this quarter some of the largest corporations in the world remain, including Wal-Mart. American International Group (AIG) will likely draw a great deal of press upon earnings on Thursday as the "bailed-out" company continues its attempt to regain support.
News Affecting the Markets

Key decisions on the U.S. budget are likely to occur in the next two weeks as the March 1 deadline approaches for lawmakers. Thus far, the equity markets have seen little impact from this looming piece of legislature; however, with indexes at multi-year highs uncertainty surrounding federal spending cuts can be enough to tip the market south.

Smart Investing

Goal Setting:  Setting goals is not just about achieving success, but experiencing an enriching journey while on the process of acquiring your goal. There is so much to be had when you have set your goals in life. One of which is achieving self-development. Setting goals is a sign of maturity in a person. Clear cut intent will help develop motivation and forces you to practice some of the important values in life like determination, perseverance and discipline. Setting a goal will also give you a clear road map on which direction and will enhance your self-esteem as you know what you want to achieve and how to get there. Even though there is no guarantee that you will achieve every goal, what matters most is the growing process that you will experience even as making that journey that will enable you to take on similar or even better opportunities.

Earnings for the Week

Monday: Hertz Global Holdings Inc (HTZ), Stillwater Mining Co (SWC)

Tuesday:  Marriott International Inc (MAR) {After the Close}, Medtronic Inc (MDT), Nabors Industries Ltd (NBR) {After the Close}, Omnicare Inc (OCR), Sealed Air Corp (SEE), Terex Corp (TEX), Windstream Corp (WIN)

Wednesday: Boyd Gaming Corp (BYD), Devon Energy Corp (DVN), DISH Network Corp (DISH), Eaton Vance Corp (EV), Energy Transfer Partners LP (ETP) {After the Close}, Fluor Corp (FLR) {After the Close}, Forest Oil Corp (FST) {After the Close}, Goodrich Petroleum Corp (GDP) {After the Close}, MGM Resorts International (MGM), Newfield Exploration Co (NFX), Owens Corning (OC), Questar Corp (STR) {After the Close}, Sodastream International Ltd (SODA), Toll Brothers Inc (TOL), Walter Energy Inc (WLT) {After the Close}, Williams Companies Inc (WMB) {After the Close}

Thursday:  American International Group Inc (AIG) {After the Close}, Cabot Oil & Gas Corp (COG) {After the Close}, Chesapeake Energy Corp (CHK), Community Health Systems Inc (CYH) {After the Close}, Ensco PLC (ESV), Hormel Foods Corp (HRL), Host Hotels & Resorts Inc (HST), Newmont Mining Corp (NEM) {After the Close}, Nordstrom Inc (JWN) {After the Close}, OfficeMax Inc (OMX), PG&E Corp (PCG), Plains Exploration & Production Co (PXP), Reliance Steel and Aluminum Co (RS), Safeway Inc (SWY), Southwestern Energy Co (SWN), Wal-Mart Stores Inc (WMT)

Friday:  Abercrombie & Fitch Co (ANF)

* Earnings dates and times are subject to change

Economic Data this Week

Monday
No announcements scheduled.

Tuesday

NAHB Housing Market Index @ 10:00 AM for February (Est. = 48, Prior = 47)

Wednesday

MBA Mortgage Index @ 7:00 AM for 02/16 (Est. = n/a, Prior = -6.4%)
Housing Starts @ 8:30 AM for January (Est. = 900K to 910K, Prior = 954K)
Building Permits @ 8:30 AM for January (Est. = 915K to 918K, Prior = 903K)
PPI @ 8:30 AM for January (Est. = 0.1% to 0.3%, Prior = -0.2%)
FOMC Minutes @ 2:00 PM for 01/30

Thursday

Initial Claims @ 8:30 AM for 02/09 (Est. = 358K to 365K, Prior = 341K)
Continuing Claims @ 8:30 AM for 02/02 (Est. = 3150K to 3200K, Prior = 3114K)
CPI @ 8:30 AM for January (Est. = 0.1%, Prior = 0.0%)
Existing Home Sales @ 10:00 AM for January (Est. = 4.94M to 4.95M, Prior = 4.94M)
Philadelphia Fed @ 10:00 AM for February (Est. = 1.5 to 2.0, Prior = -5.8)
Natural Gas Inventories @ 10:30 AM for 02/16 (Est. = n/a, Prior = -157)
Crude Inventories @ 11:00 AM for 02/16 (Est. = n/a, Prior = 0.560M)

 

Weekly Newsletter February 10th - February 16th

Current Events:  Major U.S. equity indexes all finished at or near the highs for the week on Friday despite a roller-coaster type week. With Friday's strong finish the Nasdaq and S&P 500 indexes are impressively at new highs for 2013.

What to Look for This Week

A relatively full plate of earnings announcements are scheduled this week as popular beverage giants Coca-Cola and Pepsi lead the way. The quarter has been quite the favorable one for the stock market as corporations have been routinely reporting better than expected earnings due to such low initial forecasts.

News Affecting the Markets

Investors will be eager to see how the market handles the news of the devastating snow storm that hit the north east this weekend. Nine states have reported a loss of electricity due to the poor weather conditions which have impacted an estimated 660,000 customers. Highways were also effected as abandoned cars littered the roadways.

Smart Investing

Buying a Franchise:  Buying a franchise business is something that should always be approached with a good deal of caution and research. You should make sure that you scrutinize over every detail of the franchise you wish to purchase and make sure a competent franchise attorney looks over ever document the franchisor provides to you. By law, franchisors must provide the franchisee with the proper documentation and numbers that will help you make your decision. It is vital to conduct your own independent research on the franchise you wish to join. After doing the research and crunching the numbers, you'll have a pretty good idea whether this particular industry is right for you and if the franchisor would be easy to work with. Do not jump into a franchise opportunity without first doing your due-diligence to insure this venture will be profitable and fun.

Earnings for the Week

Monday: Lions Gate Entertainment Corp (LGF) {After the Close}, Loews Corp (L), Mannkind Corp (MNKD), Masco Corp (MAS) {After the Close}, Radian Group Inc (RDN)

Tuesday:  Avon Products Inc (AVP), Cliffs Natural Resources Inc (CLF) {After the Close}, DDR Corp (DDR) {After the Close}, Fidelity National Information Services Inc (FIS), FMC Technologies Inc (FTI) {After the Close}, Marsh & McLennan Companies Inc (MMC), Michael Kors Holdings Ltd (KORS), Omnicom Group Inc (OMC), Rackspace Hosting Inc (RAX) {After the Close}, Reynolds American Inc (RAI), The Coca-Cola Co (KO), The Goodyear Tire & Rubber Co (GT), The McGraw-Hill Companies Inc (MHP), Western Union Co (WU) {After the Close}

Wednesday: Avis Budget Group Inc (CAR) {After the Close}, CenturyLink Inc (CTL) {After the Close}, Dean Foods Co (DF), Deere & Co (DE), Dr Pepper Snapple Group Inc (DPS), Duke Energy Corp (DUK), Hospira Inc (HSP), Lorillard Inc (LO), Metlife Inc (MET) {After the Close}, Oceaneering International Inc (OII) {After the Close}, Pioneer Natural Resources Co (PXD) {After the Close}, Skechers USA Inc (SKX) {After the Close}, The Jones Group Inc (JNY), Whole Foods Market Inc (WFM) {After the Close}

Thursday:  Agilent Technologies Inc (A) {After the Close}, Apache Corp (APA), CBS Corp (CBS) {After the Close}, Directv (DTV), EOG Resources Inc (EOG), General Motors Co (GM), GNC Holdings Inc (GNC), Key Energy Services Inc (KEG) {After the Close}, PepsiCo Inc (PEP), PPL Corp (PPL), Realty Income Corp (O), Vulcan Materials Co (VMC), Waste Management Inc (WM)

Friday:  American Electric Power Company Inc  (AEP), Campbell Soup Co (CPB), Ventas Inc (VTR)
* Earnings dates and times are subject to change

Economic Data this Week

Monday
No announcements scheduled.

Tuesday
Treasury Budget @ 2:00 PM for January (Est. = -$2.0B, Prior = -$27.4B)

Wednesday
MBA Mortgage Index @ 7:00 AM for 02/09 (Est. = n/a, Prior = 3.4%)
Retail Sale @ 8:30 AM for December (Est. = -0.3% to 0.1%, Prior = 0.5%)
Business Inventories @ 10:00 AM for December (Est. = 0.1% to 0.3%, Prior = 0.3%)
Crude Inventories @ 10:30 AM for 02/09 (Est. = n/a, Prior = 2.623M)

Thursday

Initial Claims @ 8:30 AM for 02/09 (Est. = 365K, Prior = 366K)
Continuing Claims @ 8:30 AM for 02/02 (Est. = 3200K, Prior = 3224K)
Natural Gas Inventories @ 10:30 AM for 02/09 (Est. = n/a, Prior = n/a)

Friday

Empire Manufacturing @ 8:30 AM for February (Est. = -2.0 to 0.0, Prior = -7.8)
Industrial Production @ 9:15 AM for January (Est. = 0.2% to 0.4%, Prior = 0.3%)
Capacity Utilization @ 9:15 AM for January (Est. = 78.9% to 79.0%, Prior = 78.8%)
Wholesale Inventories @ 10:00 AM for December (Est. = 0.3% to 0.7%, Prior = 0.6%)
Michigan Sentiment @ 9:55 AM for February (Est. = 73.0 to 73.5, Prior = 73.8)

 

Weekly Newsletter February 3rd - February 9th

Current Events:  US indexes suffer their largest single-session loss of 2013 on Monday due to concerns of reoccurring Europe issues. The big drop comes just as the Dow Jones Industrial Index was ever so close of reaching all-time highs seen over five years ago.

What to Look for This Week

Last week was a busy one for investors as 122 companies reported earnings catapulting U.S. indexes to highs not seen in years. While there are far fewer stocks this week, insurance favorites All-State and Aflac are just some of the popular brand names that will gain attention this week regardless of worries from governments overseas.

News Affecting the Markets

Spanish and Italian debt yields surge on Monday sending U.S. stocks tumbling. Rattled investors pushed bond yields higher in large part to new drama surrounding Spanish and Italian scandals.

Smart Investing

Brokerage Deposits and Withdrawals:  Most brokers allow their clients to deposit and withdrawal their funds with the simplicity of a bank account. However, this should be verified and considered before opening an account. If deposits and withdrawals can only be made through electronic transfer it will almost certainly be at a cost to the investor. Free withdrawals through a check in the mail are likely available, but this takes time and might not meet your needs. Electronic transfers are instantaneous, but costly. Another thing to consider is timing- some brokers require you to wait 3-5 days after a transaction before withdrawing funds. Some accounts come with a Visa or MasterCard debit card that can be used anywhere these cards are accepted to make purchases with the funds you keep in your account. Regardless of the type of trader you are, it is important to consider how you will access your funds once they are in the account before signing up with a broker.

Earnings for the Week

Monday: Anadarko Petroleum Corp (APC) {After the Close}, Baidu Inc (BIDU), Gannett Co Inc (GCI), Royal Caribbean Cruises Ltd (RCL), Simon Property Group Inc (SPG), Sysco Corp (SYY), Yum! Brands Inc (YUM)

Tuesday:  Aflac Inc (AFL) {After the Close}, Arch Coal Inc (ACI), Archer Daniels Midland Co (ADM), Automatic Data Processing Inc (ADP), Becton Dickinson and Co (BDX), Cardinal Health Inc (CAH), CME Group Inc (CME) {After the Close}, Computer Sciences Corp (CSC), Diamond Offshore Drilling Inc (DO), Eaton Corp (ETN), Emerson Electric Co (EMR), Equity Residential (EQR) {After the Close}, Estee Lauder Companies Inc (EL), Genworth Financial Inc (GNW) {After the Close}, Kellogg Co (K), Kimco Realty Corp (KIM) {After the Close}, NYSE Euronext (NYX), Revlon Inc (REV), Sirius XM Radio Inc (SIRI), UDR Inc (UDR), Union Bankshares Inc (UNB), Walt Disney Co (DIS) {After the Close}

Wednesday: Allstate Corp (ALL) {After the Close}, Con-way Inc (CNW), Covanta Holding Corp (CVA) {After the Close}, Coventry Health Care Inc (CVH), CVS Caremark Corp (CVS), DeVry Inc (DV) {After the Close}, LeapFrog Enterprises Inc (LF) {After the Close}, Lincoln National Corp (LNC) {After the Close}, Macerich Co (MAC), Mettler Toledo International Inc (MTD) {After the Close}, Prudential Financial Inc (PRU) {After the Close}, Ralph Lauren Corp (RL), Time Warner Inc (TWX), Visa Inc (V) {After the Close}

Thursday:  Advance Auto Parts Inc (AAP), Bunge Ltd (BG), Cigna Corp (CI), Coca-Cola Enterprises Inc (CCE), Hasbro Inc (HAS) {After the Close}, Lazard Ltd (LAZ), Monster Worldwide Inc (MWW), Noble Energy Inc (NBL), Philip Morris International Inc (PM), Sprint Nextel Corp (S), Starwood Hotels & Resorts Worldwide Inc (HOT), XL Group PLC (XL) {After the Close}

Friday:  American Axle and Manufacturing Holdings Inc (AXL), AOL Inc (AOL), CBOE Holdings Inc (CBOE), Entergy Corp (ETR), Moodys Corp (MCO)
* Earnings dates and times are subject to change

 Economic Data this Week

Monday
Factory Orders @ 10:00 AM for December (Act. = 1.8%, Prior = -0.3%)

Tuesday

ISM Services @ 10:00 AM for January (Est. = 55.5 to 55.6, Prior = 56.1)

Wednesday
MBA Mortgage Index @ 7:00 AM for 02/02 (Est. = n/a, Prior = -8.1%)
Crude Inventories @ 10:30 AM for 02/02 (Est. = n/a, Prior = 5.947M)

Thursday

Initial Claims @ 8:30 AM for 02/02 (Est. = 360K to 365K, Prior = 368K)
Continuing Claims @ 8:30 AM for 01/26 (Est. = 3200K, Prior = 3198K)
Natural Gas Inventories @ 10:30 AM for 02/02 (Est. = n/a, Prior = -194)
Consumer Credit @ 3:00 PM for December (Est. = $10.0B to $11.9B, Prior = $16.0B)

Friday

Wholesale Inventories @ 10:00 AM for December (Est. = 0.3% to 0.7%, Prior = 0.6%)